Base Carbon Reports Third-Quarter 2023 Financial Results
- Execution of agreement with VNV for the India ARR Project signifies expansion and growth opportunities.
- Capital deployment in Vietnam is near completion, indicating progress in project execution.
- The purchase of common shares for cancellation under the NCIB program demonstrates the company's confidence in its financial position and future prospects.
- Realized and unrealized gains on investments in carbon credit projects totaled $111,102, reflecting positive financial performance in this area.
- Despite the net loss in Q3 2023, the company's income per share remains positive, indicating potential for recovery and future profitability.
- The significant net loss of $1.7 million in Q3 2023 may raise concerns about the company's financial stability and operational efficiency.
- The decrease in cash and cash equivalents from $12,918 to $3,838 between December 31, 2022, and September 30, 2023, may indicate potential liquidity challenges.
TORONTO, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF) (“Base Carbon”, or the “Company”) is pleased to announce its third-quarter 2023 consolidated financial results. All financial references are denominated in U.S. dollars, unless otherwise noted.
Company Highlights for the Three and Nine Months Ended September 30, 2023:
- In Q3 2023, the Company executed an agreement with Value Network Ventures Advisory Services Pte Ltd. (“VNV”), through wholly owned subsidiary Base Carbon Capital Partners Corp., to facilitate the development of a nature-based carbon removal project, focused on the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh (the “India ARR Project”).
- Deployed initial
$3.6m m in India ARR Project capital towards the planting of approximately 6.5 million trees. - Vietnam project capital deployment is now
92% complete with contractual, milestone-based payments of$0.2m m deployed during Q3 2023. - Incurred a
$1.7 million net loss in Q3 2023, representing$0.01 loss per share. - Purchased 4,476,920 common shares for cancellation pursuant to the Company’s normal course issuer bid program (“NCIB”) during the nine months ended September 30, 2023. The current NCIB program began on June 21, 2023, allowing Base Carbon to purchase up to an additional 7,974,471 common shares during the 12 months following renewal.
Financial Highlights:
| (in thousands of United States Dollars) | Three months ended | Nine months ended | ||||
| September 30, 2023 | September 30, 2023 | |||||
| Realized and unrealized gains on investments in carbon credit projects | $ | - | $ | 111,102 | ||
| Total operating expenses | 1,679 | 4,977 | ||||
| Operating income (loss) for the period | (1,679 | ) | 106,126 | |||
| Income tax expense | - | (4,824 | ) | |||
| Net income (loss) | (1,745 | ) | 101,284 | |||
| Basic income (loss) per share | (0.01 | ) | 0.83 | |||
| Diluted income (loss) per share | $ | (0.01 | ) | $ | 0.83 | |
| (in thousands of United States Dollars) | September 30, 2023 | December 31, 2022 | ||||
| Cash and Cash Equivalents | $ | 3,838 | $ | 12,918 | ||
| Current investment in carbon credit projects | 25,634 | - | ||||
| Non-current investment in carbon credit projects | 110,652 | 24,471 | ||||
| Total assets | $ | 142,793 | $ | 44,091 | ||
Third Quarter Investor Update Call
The Company invites current and prospective shareholders to attend an investor update call on Wednesday, November 15, 2023, at 11:00 a.m. Eastern Standard Time (EST). Management will provide a business update and respond to investor questions via Zoom Webinar.
DATE: Wednesday, November 15, 2023
TIME: 11:00 a.m. EST
REGISTRATION: To receive the Zoom meeting link and passcode, please register here.
QUESTIONS: Please submit questions ahead of time to: investorrelations@basecarbon.com.
About Base Carbon
Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.
Media and Investor Inquiries
Base Carbon Inc.
Investor Relations
Tel: +1 647 952 3979
E-mail: investorrelations@basecarbon.com
Media Inquiries
E-mail: media@basecarbon.com
Cautionary Statement Regarding Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business and the financial results of the Company. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. These statements should not be read as guarantees of future performance, results, or achievements.
Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.
The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the management discussion and analysis for the third quarter ended September 30, 2023 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
FAQ
What is the India ARR Project executed by Base Carbon Inc.?
What is the net loss incurred by Base Carbon Inc. in Q3 2023?
What is the purpose of the NCIB program of Base Carbon Inc.?
What are the financial highlights of Base Carbon Inc. for the nine months ended September 30, 2023?
