Mr. Anthony Durkacz reports
STOCK TREND CAPITAL ANNOUNCES CLOSING OF STRATEGIC INVESTMENT IN YOUNET A
COMPANY DEVELOPING AI SOLUTIONS
Stock Trend Capital Inc. has closed the
strategic investment to acquire over 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 entered into on Aug. 1, 2023, with an arm's-length party, the aggregate consideration of $855,000 was
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 acquired 26,666,667 common shares in the capital of
YOUNET, representing over 20 per cent of YOUNET's issued and outstanding common shares following the
acquisition.
The company sees the investment in YOUNET as providing the shareholders of the company with value
as the company looks to diversify into the disruptive AI sector, and specifically YOUNET, as it is well
positioned to build the technology that targets a highly lucrative established industry using its proprietary
AI technology. The company expects the YOUNET shares acquired to increase in value as YOUNET
comes closer to bringing its disruptive technology to the market.
Additional information
The acquisition is an independent and arm's-length transaction. No member of YOUNET's board of
directors and none of YOUNET's shareholders are related parties to the company. No new 10-per-cent
shareholder of the company was created as a result of the acquisition.
In connection with the acquisition, the company has paid a finder's fee to an arm's-length party, to be paid on closing the acquisition, equal to $100,000 and to be paid in common shares, being 4,545,454 common
shares at 2.2 cents per common share.
Amendment to investment policy
As previously announced, the company has amended its investment policy to broaden and diversify the
eligible industries of its investment targets to permit the company to make strategic investments within the
artificial intelligence sector. The amended investment policy is available under the company's profile on
SEDAR.
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.
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