Cloud3 Ventures Inc. Announces Execution of a Letter of Intent with QStarLabs Corporation
Cloud3 Ventures Inc. (CLDVF) has entered into a non-binding letter of intent with QStarLabs Corporation for a reverse takeover transaction. Upon completion, QStar shareholders will own 80% of the resulting issuer, while concurrent financing subscribers and existing Cloud3 shareholders will each hold 10%. The transaction requires completion of a minimum C$7 million concurrent financing and is expected to close after executing a definitive agreement by July 31, 2025. The deal will constitute a "Fundamental Change" under CSE policies, triggering a trading halt upon definitive agreement announcement. The resulting issuer's management and board will be comprised of QStar nominees.
Cloud3 Ventures Inc. (CLDVF) ha stipulato una lettera di intenti non vincolante con QStarLabs Corporation per un'operazione di reverse takeover. Al completamento, gli azionisti di QStar deterranno l'80% della società risultante, mentre gli investitori del finanziamento simultaneo e gli azionisti attuali di Cloud3 possiederanno ciascuno il 10%. L'operazione richiede il completamento di un finanziamento simultaneo minimo di 7 milioni di dollari canadesi ed è prevista la chiusura dopo la firma di un accordo definitivo entro il 31 luglio 2025. L'accordo rappresenterà un "Cambiamento Fondamentale" secondo le politiche della CSE, comportando una sospensione delle negoziazioni al momento dell'annuncio dell'accordo definitivo. La direzione e il consiglio di amministrazione della società risultante saranno composti da nominativi di QStar.
Cloud3 Ventures Inc. (CLDVF) ha firmado una carta de intención no vinculante con QStarLabs Corporation para una operación de adquisición inversa. Tras completarse, los accionistas de QStar poseerán el 80% de la entidad resultante, mientras que los suscriptores del financiamiento concurrente y los accionistas actuales de Cloud3 tendrán cada uno el 10%. La transacción requiere la finalización de un financiamiento concurrente mínimo de 7 millones de dólares canadienses y se espera que cierre tras la ejecución de un acuerdo definitivo antes del 31 de julio de 2025. El acuerdo constituirá un "Cambio Fundamental" según las políticas de la CSE, lo que provocará una suspensión de la negociación al anunciarse el acuerdo definitivo. La gestión y el consejo de administración de la entidad resultante estarán compuestos por nominados de QStar.
Cloud3 Ventures Inc. (CLDVF)는 QStarLabs Corporation과 역합병 거래를 위한 비구속적 의향서에 서명했습니다. 완료 시 QStar 주주가 결과 회사의 80%를 보유하게 되며, 동시 자금 조달 구독자와 기존 Cloud3 주주는 각각 10%씩 보유하게 됩니다. 이 거래는 최소 700만 캐나다 달러의 동시 자금 조달 완료가 필요하며, 2025년 7월 31일까지 최종 계약 체결 후 마감될 예정입니다. 이 거래는 CSE 정책에 따른 "중대한 변경"으로 간주되어 최종 계약 발표 시 거래가 중단됩니다. 결과 회사의 경영진과 이사회는 QStar 지명자로 구성됩니다.
Cloud3 Ventures Inc. (CLDVF) a conclu une lettre d'intention non contraignante avec QStarLabs Corporation pour une opération de prise de contrôle inversée. Une fois finalisée, les actionnaires de QStar détiendront 80% de l'émetteur résultant, tandis que les souscripteurs du financement concomitant et les actionnaires actuels de Cloud3 détiendront chacun 10%. La transaction nécessite la réalisation d'un financement concomitant minimum de 7 millions de dollars canadiens et devrait se clôturer après la signature d'un accord définitif avant le 31 juillet 2025. L'opération constituera un "Changement Fondamental" selon les politiques de la CSE, entraînant une suspension des négociations lors de l'annonce de l'accord définitif. La direction et le conseil d'administration de l'émetteur résultant seront composés de représentants nommés par QStar.
Cloud3 Ventures Inc. (CLDVF) hat eine unverbindliche Absichtserklärung mit QStarLabs Corporation für eine Reverse-Takeover-Transaktion unterzeichnet. Nach Abschluss werden die QStar-Aktionäre 80% des resultierenden Emittenten besitzen, während die Zeichner der gleichzeitigen Finanzierung und die bestehenden Cloud3-Aktionäre jeweils 10% halten werden. Die Transaktion erfordert den Abschluss einer Mindestfinanzierung von 7 Millionen kanadischen Dollar und soll nach Unterzeichnung einer endgültigen Vereinbarung bis zum 31. Juli 2025 abgeschlossen werden. Das Geschäft stellt eine "grundlegende Änderung" gemäß den CSE-Richtlinien dar, was bei Bekanntgabe der endgültigen Vereinbarung zu einem Handelsstopp führt. Die Geschäftsführung und der Vorstand des resultierenden Emittenten werden aus von QStar benannten Mitgliedern bestehen.
- QStar shareholders will maintain significant control with 80% ownership, indicating strong confidence in the merged entity
- Substantial C$7 million concurrent financing planned to support growth
- Strategic reverse takeover provides QStar with access to public markets through CSE listing
- Significant dilution for existing Cloud3 shareholders, retaining only 10% ownership
- Trading halt will be imposed upon definitive agreement announcement, limiting shareholder liquidity
- Transaction remains subject to multiple conditions including due diligence, audited financials, and regulatory approvals
Toronto, Ontario--(Newsfile Corp. - May 27, 2025) - Cloud3 Ventures Inc. (CSE: CLDV) (OTCQB: CLDVF) (FSE: WQ40) ("Cloud3 Ventures" or the "Company"), is pleased to announce that it has entered into an arm's length non-binding letter of intent with QStarLabs Corporation ("QStar") dated May 26, 2025 (the "LOI"), pursuant to which Cloud3 will acquire all of the issued and outstanding shares of QStar by way of a reverse takeover transaction (the "Transaction"). Upon closing, shareholders of QStar will own
The Transaction is expected to be completed by way of amalgamation or other similar structure, subject to:
- Completion of a minimum C
$7,000,000 concurrent financing (the "Concurrent Financing"). - Execution of a definitive agreement (the "Definitive Agreement").
- Delivery of audited financial statements for both Cloud3 and QStar.
- CSE acceptance and any required shareholder approvals.
- Other customary conditions, including due diligence and the absence of material adverse changes.
It is anticipated that the Definitive Agreement will be executed by July 31, 2025, and the Transaction is expected to be completed as expeditiously as possible. The Company intends to issue a comprehensive news release upon execution of the Definitive Agreement disclosing material terms of the Transaction. As the Transaction is expected to constitute a "Fundamental Change" if completed, pursuant to the policies of the CSE, the Company expects that the CSE will impose a trading halt on the Company's shares following announcement of the executed Definitive Agreement, which will remain in effect until the closing of the Transaction or as otherwise determined by the CSE.
Certain securities issued in connection with the Transaction may be subject to escrow or resale restrictions under CSE policies. Pursuant to the LOI, the parties have agreed to deal exclusively with each other with regard to the Transaction. Upon completion, management and the board of directors of the Resulting Issuer will be comprised of nominees of QStar.
About QStar
QStarLabs is an AI application company specializing in agents for the sports betting, iGaming, and web3 verticals. Founded to bridge the gap between AI research and enterprise applications, QStarLabs partners with gaming operators to drive technical excellence and business results. The company combines proprietary data infrastructure, reinforcement learning algorithms, and applied AI with leading generative AI models to deliver enterprise-grade solutions for operators.
QStarLabs' PERSONAS platform empowers operators and sports celebrities to deploy autonomous performance marketing agents that optimize fan engagement, user acquisition, and revenue generation.
About Cloud3 Ventures Inc.
Cloud3 Ventures Inc. is a Canadian company that operates at the forefront of blockchain innovation. Specializing in the LIF3 ecosystem, the Company provides infrastructure solutions to enable the next generation of decentralized applications.
For further information please contact:
David Nikzad
CEO and Co-Founder
Telephone: 1-866-395-6989
Email: admin@cloud3.ventures
Website: www.cloud3.ventures
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Cautionary Note Regarding Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the news release, such forward-looking statements include, but are not limited to, statements regarding the Company's performance, business objectives, milestones and the potential outcomes from its development contained therein.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation: the Company's ability to comply with all applicable regulations and laws; the signing of a Definitive Agreement in respect of the Transaction, including the terms thereof; timing for completion of the Transaction; required approvals for the completion of the Transaction; the ability of QStar to implement its business strategies; the ability of the Company and QStar to secure the Concurrent Financing; the actual timeline of the Transaction; the anticipated benefits of the Transaction. The business operations of QStar involve providing AI solutions to the sports betting and iGaming industries, which are highly regulated and may be restricted in certain jurisdictions. The Resulting Issuer's future operations could be affected by changes in gaming laws, licensing requirements, or regulatory scrutiny. Investors are cautioned that the Company does not guarantee the legality of QStar's technology in all markets.
Readers are cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted due to numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the Company's control. Readers are cautioned not to place undue reliance on forward-looking information, which management believes to be reasonable as of the date of this release, but which may prove to be incorrect. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable law.
No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253570
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