Mr. Anthony Durkacz reports

STOCK TREND CAPITAL ANNOUNCES STRATEGIC INVESTMENT IN YOUNET, A COMPANY DEVELOPING AI SOLUTIONS

Stock Trend Capital Inc. intends to complete a strategic investment to acquire a 20-per-cent interest in YOUNET from an arm's-length party, for total aggregate consideration of $855,000.

YOUNET is a privately held Canadian company developing an artificial intelligence (AI) platform called Rabbit AI. Rabbit AI is being designed to handle tasks normally done by a personal assistant. Depending on the needs of the user, Rabbit AI may produce written content or responses such as e-mails, texts and documents, and is being designed to sift through communications and data to provide replies for its master.

Pursuant to the terms of a share purchase agreement that the company intends to enter into with an arm's-length party, the aggregate consideration of $855,000 will be satisfied through: (i) $250,000 paid in cash upon closing the acquisition, and (ii) $605,000 satisfied through the issuance of 27.5 million common shares in the capital of the company on the basis of a deemed price per common share equal to 2.2 cents per common share. In exchange for the consideration, the company will acquire 26,666,667 common shares in the capital of YOUNET, representing 20 per cent of YOUNET's issued and outstanding common shares following the acquisition.

Additional information

The acquisition is expected to close on or before July 31, 2023, and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange (the CSE). The management and the board of directors of both the company and Rabbit AI unanimously support the acquisition.

The acquisition is an independent and arm's-length transaction. No member of Rabbit AI's board of directors and none of Rabbit AI's shareholders are related parties to the company. No new 10-per-cent shareholder of the company will be created as a result of the acquisition.

In connection with the acquisition, the company has agreed to pay an arm's-length party, a finder's fee equal $100,000 to be paid on closing the acquisition, to be paid in common shares, being 4,545,454 common shares at 2.2 cents per common share.

About Stock Trend Capital Inc.

Stock Trend Capital is an investment issuer primarily focused on the artificial intelligence (AI) and Canadian cannabis industries. The issuer intends to focus on investing in private and public entities with strong intellectual property, exceptional management and high-growth potential that may be strategically positioned in the market.

We seek Safe Harbor.