Carbon Streaming Announces Update on the Status of the Rimba Raya Verra Account and Concession License
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.
- Temporary suspension of Concession License revocation allows project activities to continue.
- Carbon Streaming actively pursuing legal avenues to protect its investment.
- Engagement with local partners and Indonesian Government to maintain project continuity.
- Company committed to enforcing legal and contractual rights under Rimba Raya Stream.
- Verra temporarily suspended the Rimba Raya project's registry account.
- Concession License revocation by Indonesian Government poses significant risk.
- Fair value of Rimba Raya Stream determined to be nil for Q1 2024.
- Uncertainty regarding the final duration of the suspension and legal outcomes.
TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) today provided an update on the status of the Rimba Raya project’s Verra account and its Forest Utilization Business License (the “Concession License”).
On May 17, 2024, Verra temporarily suspended InfiniteEARTH Limited and its Indonesian subsidiary PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project (collectively “InfiniteEARTH”), registry account for the Rimba Raya project. Verra has written to InfiniteEARTH, with whom the Company had previously entered into the carbon credit streaming agreement covering the Rimba Raya project (the “Rimba Raya Stream”), to seek clarification on several matters, including the revocation of the Concession License by the Indonesian Government’s Ministry of Environment and Forestry (the “MOEF”), and the status of InfiniteEARTH’s role in the Rimba Raya project and its relationship with PT Rimba Raya Conservation (“PT Rimba”), the local concession holder for the Rimba Raya project. InfiniteEARTH was given seven days to respond, after which Verra will determine whether any further action is required under its program rules and requirements.
On May 16, 2024, the State Administrative Court of Jakarta issued an interlocutory decision for the MOEF to suspend the implementation of the MOEF decree in respect of the revocation of the Concession License. This suspension will allow activities at the Rimba Raya project to resume until a final and binding decision on the revocation of the Concession License.
As previously announced, a final decision from the State Administrative Court of Jakarta is currently anticipated during June 2024 (which decision is subject to potential appeal by the parties). If the parties appeal the decision, the suspension would remain in place during the appeal process until there is a final and binding decision that has permanent legal force, unless there is another stipulation from the court that states otherwise. As a result, the duration of the suspension is unknown at this time.
For the Company’s most recently completed financial period, the three month quarter ended March 31st, 2024, the Company determined the fair value of the Rimba Raya Stream to be nil due to the Concession License revocation. The Company will re-evaluate the fair value of the Rimba Raya Stream in the event there is a change in the facts and circumstances surrounding the Rimba Raya project, the revocation of the Concession License and the Indonesian national carbon emission regulations. The Company is continuing to evaluate all legal avenues to protect its investment in the Rimba Raya project and to strictly enforce its legal and contractual rights under the Rimba Raya Stream. In addition, Carbon Streaming will also continue to work closely with InfiniteEARTH on its active engagement with its local partners, the MOEF and the Indonesian Government, to attempt to preserve the continuity of the Rimba Raya project.
For a comprehensive discussion regarding the risks, assumptions and uncertainties that could further impact the Rimba Raya project and the Rimba Raya Stream, including, without limitation, concerning the legal status of the Concession License and the Company’s Rimba Raya Stream, investors are urged to review the section of the Company’s management’s discussion and analysis for the three months ended March 31, 2024 dated as of May 15, 2024 entitled “Strategy and Outlook – Indonesia Update”, the section of the Company’s Annual Information Form dated as of March 27, 2024 entitled “Risk Factors” and the press releases dated April 26, 2024 and May 15, 2024, copies of which are available on SEDAR+ at www.sedarplus.ca.
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, reduction and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.
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ON BEHALF OF THE COMPANY:
Justin Cochrane, President & Chief Executive Officer
Tel: 647.846.7765
info@carbonstreaming.com
www.carbonstreaming.com
Investor Relations
investors@carbonstreaming.com
Media
media@carbonstreaming.com
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 with respect Verra’s rules and procedures; statements with respect to InfiniteEARTH’s status as the project proponent of the Rimba Raya project; statements with respect to the status of the Concession License held by PT Rimba and the evaluation of legal avenues to protect the Company’s investment in the Rimba Raya project and to enforce its legal and contractual rights; statements with respect to the duration of the suspension of the decree revoking the Concession License; statements with respect to the timing of a final ruling from the State Administrative Court of Jakarta.
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: changes to the status of registration of the Rimba Raya project under Verra; the outcome of the final ruling with respect to the revocation of the Concession License held by PT Rimba; general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and ESG initiatives 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; dependence upon key management; impact of corporate restructurings; reputational risk; 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; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; 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; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s Annual Information Form dated as of March 27, 2024 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.
FAQ
What is the status of Carbon Streaming's Rimba Raya project as of May 2024?
Why was the Rimba Raya project's Verra account suspended?
What impact does the suspension of the Concession License have on Carbon Streaming?
When is the final decision on the Concession License revocation expected?
What steps is Carbon Streaming taking to protect its investment in the Rimba Raya project?
