Cryptostar closes $634,500 private placement

Executive Summary

• Cryptostar Corp. has closed its previously announced non-brokered private placement, issuing 42.3 million common shares at $0.015 per share.
• The offering generated gross proceeds of $634,500, with no finders' fees or commissions paid.
• The subscription was made by ACN 117 402 838 Pty. Ltd., a related-party entity controlled by CEO David Jellins and CCO Amelia Jones, constituting a related-party transaction exempt from formal valuation requirements.

Key Details

• Transaction Structure: Non-brokered private placement offering.
• Shares Issued: 42,300,000 common shares.
• Price Per Share: $0.015 (1.5 cents).
• Gross Proceeds: $634,500.
• Fees: No finders' fees or commissions were paid.
• Use of Proceeds: Business operations, expansion of digital infrastructure, general working capital, and evaluating opportunities in high-performance computing (HPC) and AI data centre sectors.
• Subscriber Details: ACN 117 402 838 Pty. Ltd. subscribed for the full amount.
• Related-Party Status: The transaction is a related-party transaction under Multilateral Instrument 61-101. Exempt from formal valuation and minority shareholder approval as the insider interest does not exceed 25% of market capitalization.
• Ownership Impact:
  • Pre-offering: ACN held 60,324,235 shares (9.08% of issued and outstanding shares).
  • Post-offering: ACN holds 102,624,235 shares (22.03% of issued and outstanding shares).
• Regulatory Filings: An early warning report will be filed by ACN in accordance with applicable securities laws.
• Hold Period: Securities are subject to a four-month hold period per TSX Venture Exchange policies.

Notable Quotes

• "Cryptostar intends to use the net proceeds from the offering for business operations, expansion of its digital infrastructure and general working capital purposes, including evaluating emerging opportunities in the high performance computing and artificial intelligence data centre sectors."