Carbon Streaming Corporation (NEO: NETZ) (OTCQB:
OFSTF) (FSE: M2Q) (“Carbon Streaming” or the
“Company”) today announced that its board of directors (the
“Board of Directors”) has initiated the next phase of a
restructuring plan, a strategic review process, with the continued
goal of ensuring the Company’s competitiveness and long-term
sustainability. The Board of Directors has also established a
special committee of non-executive, independent directors (the
“Special Committee”) to assist with oversight of the
strategic alternatives review.
Mr. Swan, Chair of the Board of Directors and member of the
Special Committee stated: “The restructuring plan implemented in
2023 has continually focused on ensuring that the Company maintains
its competitiveness and sustainability, while focusing on
optimization of cash reserves. We believe that Carbon Streaming is
uniquely positioned to create shareholder value through its
diversified investment portfolio and robust sales pipeline.” Mr.
Swan continued, “The strategic review process is the next step to
ensure that Carbon Streaming continues to grow with the evolving
voluntary carbon markets.”
Progress to Date
As previously announced, in response to changing conditions in
the voluntary carbon markets and to ensure the Company’s
competitiveness and long-term sustainability, the Company has
initiated a corporate restructuring which is focused on cash flow
optimization.
To date, the Company has made significant progress reducing
operating expenses, including headcount reductions, a sublease of
its Toronto office space and the optimization of other expenses.
These steps have resulted in total operating expenses decreasing by
$3.9 million for the nine months ended September 30, 2023 when
compared to the prior-year period.
The Company has also been actively involved in reviewing its
existing carbon credit stream and royalty portfolio to recalibrate
its agreements in light of evolving voluntary carbon market
conditions, including an increased focus on carbon removal credits
and North American based projects. To date, the Company has amended
the terms of the Nalgonda Rice Farming Stream, Waverly Biochar
Stream and Magdalena Bay Blue Carbon Stream. See the Company’s
management’s discussion and analysis for the nine months ended
September 30, 2023 dated November 14, 2023 and filed on SEDAR+ at
www.sedarplus.ca for more information.
Continuing to Position the Company for Success
The Company expects to continue to advance its effort to reduce
costs, including considering a reduction to the size of the Board,
additional personnel reductions and a review of total executive
compensation. The Company anticipates such steps, when combined
with existing cost reduction measures, to deliver savings of over
$6 million per year.
Management is also continuing to actively manage its portfolio
of streams and royalties and will continue to deploy its existing
capital in an accretive way to diversify and further build out its
portfolio of projects with leading project developers to deliver
high quality carbon credits and investment opportunities.
Strategic Review
In conjunction with the Company’s corporate restructuring
efforts, the Board of Directors and the Special Committee will,
with the assistance of its financial and legal advisors, evaluate a
broad range of options with a focus on maximizing value for all
shareholders. These alternatives could include acquisitions,
divestments, corporate transactions, financings, other strategic
partnership opportunities or continuing to operate as a public
company with the potential to unlock the inherent value contained
within the Company’s diversified portfolio of carbon credit streams
and royalties on high-quality projects. While the Board of
Directors remains confident in the Company’s long-term strategic
plan and the opportunity it provides to enhance value for all
shareholders, it is open to exploring all strategic alternatives
that are in the best interests of the Company and its
stakeholders.
The Board of Directors and the Special Committee have not set a
definitive timetable for this process, nor have they made any
decisions related to strategic alternatives at this time, and there
can be no assurance that the exploration of strategic alternatives
will result in any transaction or change in strategy. The Company
does not intend to comment further on the review unless a specific
transaction is approved by the Board of Directors, the review
process is concluded, or if further disclosure is required by
law.
The Company has retained BMO Capital Markets as financial
advisor to the Board of Directors, Stikeman Elliott LLP as legal
counsel to the Company and Miller Thomson LLP as legal advisor to
the Special Committee.
About Carbon Streaming
Carbon Streaming aims to accelerate a net-zero future. We
pioneered the use of streaming transactions, a proven and flexible
funding model, to scale high-integrity carbon credit projects to
advance global climate action and additional United Nations
Sustainable Development Goals. This approach aligns our strategic
interests with those of project partners to create long-term
relationships built on a shared commitment to sustainability and
accountability and positions us as a trusted source for buyers
seeking high-quality carbon credits.
The Company’s focus is on projects that have a positive impact
on the environment, local communities, and biodiversity, in
addition to their carbon reduction or removal potential. The
Company has carbon credit streams and royalties related to over 20
projects around the world, including high integrity removal and
avoidance projects from nature-based, agricultural, engineered and
community-based methodologies.
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Cautionary Statement Regarding Forward-Looking
Information
This news release contains certain forward-looking statements
and forward-looking information (collectively, “forward-looking
information”) within the meaning of applicable securities laws. All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future, are
forward-looking information, including, without limitation,
statements pertaining to the Company’s restructuring plan;
statements pertaining to the value of its carbon credit stream and
royalty portfolio and sales pipeline; statements pertaining to the
recalibration of the Company’s carbon credit stream and royalty
portfolio; statements pertaining to the impact of the Company’s
restructuring and cost reduction measures (including, without
limitation, the amount of any potential savings therefrom);
deployment of capital in future projects; and statements pertaining
to the Company’s process for the exploration, review and evaluation
of strategic alternatives.
When used in this news release, words such as “estimates”,
“expects”, “plans”, “anticipates”, “will”, “believes”, “intends”,
“should”, “could”, “may” and other similar terminology are intended
to identify such forward-looking statements. This forward-looking
information is based on the current expectations or beliefs of the
Company based on information currently available to the Company.
Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company. They
should not be read as a guarantee of future performance or results,
and will not necessarily be an accurate indication of whether or
not such results will be achieved. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things: volatility in prices of carbon credits
and demand for carbon credits; change in social or political views
towards climate change and subsequent changes in corporate or
government policies or regulations and associated changes in demand
for carbon credits; limited operating history for the Company’s
current strategy; risks arising from competition and future
acquisition activities; concentration risk; inaccurate estimates of
growth strategy, including the ability of the Company to source
appropriate opportunities and enter into stream, royalty or other
agreements; dependence upon key management; reputational risk;
general economic, market and business conditions and global
financial conditions, including fluctuations in interest rates,
foreign exchange rates and stock market volatility; uncertainties
and ongoing market developments surrounding the validation and
verification requirements of the voluntary and/or compliance
markets; failure or timing delays for projects to be registered,
validated and ultimately developed and for emission reductions or
removals to be verified and carbon credits issued (and other risks
associated with carbon credits standards and registries); foreign
operations and political risks including actions by governmental
authorities, including changes in or to government regulation,
taxation and carbon pricing initiatives; due diligence risks,
including failure of third parties’ reviews, reports and
projections to be accurate; dependence on project partners,
operators and owners, including failure by such counterparties to
make payments or perform their operational or other obligations to
the Company in compliance with the terms of contractual
arrangements between the Company and such counterparties; failure
of projects to generate carbon credits, or natural disasters such
as flood or fire which could have a material adverse effect on the
ability of any project to generate carbon credits; volatility in
the market price of the Company’s common shares or warrants; the
effect that the issuance of additional securities by the Company
could have on the market price of the Company’s common shares or
warrants; global health crises, such as pandemics and epidemics,
including the COVID-19 pandemic; and the other risks disclosed
under the heading “Risk Factors” and elsewhere in the Company’s
Annual Information Form dated as of March 28, 2023 filed on SEDAR+
at www.sedarplus.ca.
Any forward-looking information speaks only as of the date of
this news release. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such statements due to the inherent uncertainty therein. Except
as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking
information, whether as a result of new information, future events
or results or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231115921478/en/
ON BEHALF OF THE COMPANY: Justin Cochrane, President
& CEO Tel: 647.846.7765 info@carbonstreaming.com
www.carbonstreaming.com
Investor Relations investors@carbonstreaming.com
Media media@carbonstreaming.com
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