CARBON STREAMING CORP - OFSTF STOCK NEWS

Carbon Streaming (OTCQB: OFSTF) reported financial results for Q2 2024, ending with $43.5 million in cash and no corporate debt. The company generated $0.5 million in settlements from carbon credit streaming and royalty agreements, up from $38,000 in Q2 2023. Net loss was $2.8 million, improved from a $9.2 million loss in Q2 2023. The company is focusing on cash flow optimization and working towards breakeven on operating cash flow by 2025. Recent management changes are expected to decrease operating expenses by over $1 million per year. Carbon Streaming continues to optimize its portfolio, with updates on projects including Rimba Raya, Azuero Reforestation, and Community Carbon. The company aims to become a market leader in carbon credit financing, focusing on high-quality removals and avoidance credits.

Carbon Streaming (Cboe CA: NETZ) (OTCQB: OFSTF) held its annual general and special meeting on July 24, 2024. Shareholders elected five directors and approved the appointment of Deloitte LLP as auditor. The company's omnibus long-term incentive plan was also approved. Notably, Candace MacGibbon did not stand for re-election as a director.

A total of 12,501,820 common shares, representing approximately 26.06% of outstanding shares, were voted for the election of directors. The voting results showed strong support for all nominees, with approval rates ranging from 98.3% to 99.4%.

Carbon Streaming (OTCQB: OFSTF) has announced a significant development in the Rimba Raya Project. The State Administrative Court of Jakarta has declared void the Indonesian Government's Ministry of Environment & Forestry's (MOEF) revocation of the Forest Utilization Business License for the project. This decision, made on July 11, 2024, is subject to a 14-day appeal period. The interlocutory decision from May 16, 2024, allowing project activities to resume, remains in effect during any potential appeal.

The company had previously valued the Rimba Raya Stream at nil due to the license revocation. Carbon Streaming will re-evaluate the fair value if circumstances change. The company continues to explore legal options to protect its investment and enforce its rights under the Rimba Raya Stream.

Carbon Streaming (Cboe CA: NETZ), also trading on OTCQB as OFSTF, has successfully concluded its acquisition of Blue Dot Carbon. Blue Dot, a private entity, is involved in a carbon project development and holds options for future reforestation projects. As per the share purchase agreement from May 31, 2024, the acquisition was finalized with Carbon Streaming issuing 4,559,333 common shares to Blue Dot shareholders at CAD$0.75 per share, resulting in a total purchase price of US$2.5 million.

Carbon Streaming announced significant changes to its board and senior management team, following discussions with shareholders including Marin Katusa. Justin Cochrane and Maurice Swan have resigned. New board members include Christian Milau (interim CEO), Marcel de Groot, and Olivier Garret (Chair). The company will acquire Blue Dot Carbon for US$2.5 million in shares, expected to close in July 2024. Cochrane and CFO Conor Kearns amended their employment terms, waiving certain entitlements. The annual shareholder meeting has been postponed, with a new date to be announced. The changes aim to stabilize the company and improve its financial performance after a challenging period.

Carbon Streaming has announced a carbon credit streaming agreement for the Azuero Reforestation Project in Panama. Collaborating with Microsoft, Rubicon Carbon, and Ponterra, the project aims to restore 10,000 hectares of degraded land with over 75 native tree species. The project will generate 3.24 million carbon credits through 2052, with Carbon Streaming receiving 13.5% of the credits. Microsoft has committed to purchasing 100% of Carbon Streaming's credits from the project through 2040. The project will create over 300 jobs and enable over 100 local landholders to earn an income. Initial carbon credit issuance is expected in 2027. The project has been selected by Verra for its new SD VISta Nature Framework program, targeting multiple UN Sustainable Development Goals.

Carbon Streaming has updated the status of the Rimba Raya project's Verra account and its Forest Utilization Business License. On May 17, 2024, Verra temporarily suspended the registry account of InfiniteEARTH and its Indonesian subsidiary, PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project. The suspension follows the Indonesian Government’s revocation of the Concession License. Verra has requested clarification from InfiniteEARTH, which must respond within seven days. On May 16, 2024, the State Administrative Court of Jakarta temporarily suspended the revocation, allowing project activities to continue until a final decision expected in June 2024. Carbon Streaming valued the Rimba Raya Stream at nil for the quarter ending March 31, 2024, due to the revocation. The company is exploring legal avenues to protect its investment and working with InfiniteEARTH and local partners to maintain the project.

Carbon Streaming provided an update on the Forest Utilization Business License for the Rimba Raya project. The Indonesian Ministry of Environment and Forestry (MOEF) revoked the Concession License held by PT Rimba Raya Conservation, the local partner. The revocation is based on allegations of unauthorized transfer, exceeding land area limits, and non-payment of taxes. PT Rimba has challenged this in the State Administrative Court of Jakarta. Carbon Streaming is assessing the situation, engaging with partners, and exploring legal options to protect its investments. A ruling is expected in June 2024.

Carbon Streaming announced its financial results for Q1 2024, highlighting key developments and figures.

The company posted a net loss of $35.8 million, a significant increase from a $1.0 million loss in Q1 2023, primarily due to a $33.1 million loss on revaluation of carbon credit streaming and royalty agreements.

Revenue from carbon credit sales increased to $0.4 million from $4 thousand in Q1 2023. The company ended the quarter with $49.0 million in cash and no debt.

Corporate restructuring efforts continued, resulting in a $1.4 million restructuring charge but also reducing ongoing operating expenses.

The revocation of the concession license at the Rimba Raya project led to a complete write-down of its value to $nil.

Despite setbacks, Carbon Streaming is focused on enhancing cash flow, cost-saving, and strategic investments in new projects like the Baccala Ranch Reforestation Stream.

Looking forward, the company aims to increase cash flow generation and continue its restructuring efforts to optimize operations.