CARBON STREAMING CORP - OFSTF STOCK NEWS

Carbon Streaming (OTCQB: OFSTF) has appointed Marin Katusa as CEO, effective November 25, 2024, following a comprehensive search. Katusa, one of the company's largest shareholders, will succeed interim CEO Christian Milau, who will step down from both his executive role and board position by November 30, 2024.

Notably, Katusa has elected to receive only a nominal $1 per annum salary, foregoing standard compensation to help reduce costs. He emphasized that the company's current portfolio requires further restructuring to maximize shareholder and stakeholder value.

Carbon Streaming reported Q3 2024 financial results, ending with $41.9M in cash and no corporate debt. The company faced significant challenges, recording a net loss of $11.9M compared to net income of $0.7M in Q3 2023. Key developments included a $11.7M loss on revaluation of carbon credit agreements, primarily due to the Magdalena Bay and Sustainable Community Stream values dropping to zero. The company generated $0.1M from carbon credit streaming agreements and continued its restructuring plan with a $0.3M charge. Operating loss increased to $13.6M from $0.1M in Q3 2023.

Carbon Streaming (OFSTF) has initiated arbitration proceedings and an Ontario court action to enforce its rights under the Rimba Raya PSA and related agreements. This follows the revocation of the Forest Utilization Business License for the Rimba Raya project by Indonesia's Ministry of Environment and Forestry (MOEF) on April 26, 2024. The Company alleges improper acts and breaches by Infinite-Earth and its principals.

On July 11, 2024, the Court of Jakarta declared the MOEF's revocation void, a decision upheld on September 30. The MOEF has until October 18, 2024, to appeal to the Supreme Court. Carbon Streaming had previously determined the fair value of the Rimba Raya PSA to be nil in its Q1 2024 financial results.

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.