ShiftCarbon Embarks on Strategic Business Transformation with Letter of Intent to Acquire Zero Carbon Technologies

Rhea-AI Summary

ShiftCarbon announces transformative strategic direction with intent to acquire Zero Carbon Technologies. ZCT focuses on EV battery reuse and recycling, reducing carbon footprint by 85% and improving battery energy and power densities by up to 40%. Global battery recycling market revenues projected to grow to $100 billion by 2040. ShiftCarbon to split into three independent units, amplifying investor value proposition. Completion of restructuring subject to necessary approvals.

Positive

• ShiftCarbon's acquisition of Zero Carbon Technologies positions the company to capitalize on the growing EV battery reuse and recycling sector, which is projected to be a $100 billion market by 2040. This move enhances ShiftCarbon's sustainability offerings and has the potential to unlock shareholder value.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - August 30, 2023) -  ShiftCarbon (CSE: SHFT) (OTC PINK: SHIFF) (formerly Tracesafe) (the "Company"), a global leader in the Internet of Things (IoT) platforms and an innovator in end-to-end decarbonization solutions is excited to announce a transformative strategic direction, beginning with its Letter of Intent to acquire Zero Carbon Technologies Limited. This acquisition (the "Transaction") is just the initial phase of a comprehensive business transformation designed to unlock shareholder value and bring a new wave of innovative products and services to market.

Zero Carbon Technologies Limited ("ZCT"), a private firm, is focused on the growing EV battery reuse and recycling sector, including refining battery substrate from all Li-ion batteries, and lead acid battery recycling. ZCT's technology reduces the carbon footprint of incumbent lead-acid recycling by 85%, cuts waste outputs by more than 90%, and improves battery energy and power densities by up to 40%. The global battery recycling market revenues are projected to grow to approximately 100 billion dollars by 2040.

As part of the acquisition terms detailed in the Letter of Intent, the proposed merger will see ZCT integrated into ShiftCarbon Inc, a CSE-listed company, with the Company issuing 100% of the issued and outstanding stock to ZCT.

"At Zero Carbon, our core mission has always centered on paving the way for a greener, more sustainable future," said Sir Tony Baldry, Chairman of Zero Carbon Technologies. "This merger isn't just a milestone; it's a testament to our dedication and vision. Our team is excited to introduce our groundbreaking approach to battery recycling to shareholders via the CSE. Together, we're not just setting new industry benchmarks; we're shaping the future of sustainable innovation."

"In the midst of our business evolution, we've identified several opportunities that promise not only to enhance our current offerings but also to chart a clear trajectory for our future growth," remarked Wayne Lloyd, CEO of ShiftCarbon. "The decision to split the existing publicly listed entity into three independent units will result in every shareholder of ShiftCarbon receiving shares in each of these new entities, effectively amplifying the investor value proposition."

As both companies embark on this new chapter, they remain deeply committed to their shared vision of driving innovation, enhancing shareholder value, and contributing to a more sustainable and eco-friendly future. The completion of the business restructuring between ShiftCarbon and ZCT is subject to the receipt of all necessary approvals, including without limitation, negotiation and execution of relevant Definitive Agreements, shareholder and board approval of each Company, as necessary.

Conditions Precedent

Prior to the transaction, both ShiftCarbon and ZCT are to undertake several steps to ensure seamless integration and alignment of interests:

1. ShiftCarbon commits to filing its year-end audit, annual financial statements, and subsequent quarterly reports.
2. ShiftCarbon is to undergo a business transformation, entailing:

IOT SPIN-OFF

1. The transfer of all contracts, business assets, and intellectual property associated with the previously-announced agreement with solutions by stc to a separate, spun-off legal entity (the "IoT SpinCo"). With innovative IoT technology and energy-efficient devices, this new entity will continue offering solutions for improving enterprise and Smart City operations, safety, and efficiency through location-aware intelligent devices.
2. The IoT SpinCo is set to secure financing ("Minimum Financing") of at least C$2,000,000 or another amount deemed acceptable by the Arena Partners LP and associated funds (the "Secured Creditor").

CARBON TRADING SPIN-OFF

3. All carbon-trading business assets, operations, and intellectual property not linked to the IoT SpinCo will reside in the company's fully-owned subsidiary Wishland Properties Ltd. ("Wishland"). Wishland will emerge as a distinct, unlisted entity, retaining the ShiftCarbon brand, and ensuring the continuation of ShiftCarbon's commitment to building infrastructure where carbon credit creators, buyers, and sellers can seamlessly trade while maintaining transparency and trust with global verification bodies.

3. The Secured Creditor is required to consent to ShiftCarbon's business transformation and the Zero Carbon Transaction. This will result in the release of any and all claims or liens on ShiftCarbon and Wishland, in exchange for 1,500,000 ($0.15 strike) warrants from IoT SpinCo, an imminent receipt of 2,000,000 ($0.15 strike) warrants from ShiftCarbon, and 1,500,000 ($0.15 strike) warrants from Wishland. This release is contingent upon the signing of amended credit agreement and the IoT SpinCo's Minimum Financing.

About ShiftCarbon

ShiftCarbon provides an innovative platform for carbon accounting, offsets, and MRV (Measurement, Reporting and Verification) automation. Businesses can use ShiftCarbon Measure to view a complete picture of their carbon emissions, without the need to hire external consultants or use manual calculations. ShiftCarbon Offset provides enterprises with powerful APIs that allow customers to embed carbon offsets into their business. Find more details on www.shiftcarbon.io.

ShiftCarbon also operates TraceSafe, a leading IoT cloud platform. The solution uses sensor technology to deliver precise and timely information, powering safer and smarter enterprise environments. With a presence across North America, Asia, and Europe, TraceSafe is trusted by leading organizations in healthcare, hospitality, construction, events, education, and government. Find more details on www.tracesafe.io.

About Zero Carbon Technologies

Zero Carbon Technologies is a UK private firm at the forefront of emerging battery recycling technologies. With the capability to process all battery types across various categories, the company stands as a unique player in the sector. Zero Carbon Technologies combines operational, technical, marketing, and business development expertise to shape the battery recycling landscape. The company's focus areas include the EV battery reuse and recycling space, refining of black mass from Li-ion batteries, and addressing niche battery challenges prevalent in the EU and beyond. The company's initiatives not only emphasize the value of recycling but also aim to reduce waste and promote sustainable practices.

For further information, please contact:

Wayne Lloyd
CEO, ShiftCarbon
+1 (604) 629-9975
wayne@shiftcarbon.io

Chris Farnworth
Managing Director, Zero Carbon Technologies
+1 (604) 250-1060
chris@zerocarbontechnologies.es

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

This news release contains forward-looking statements that are based on ShiftCarbon's expectations, estimates, and projections regarding its business and the economic environment in which it operates. This includes expectations related to the proposed acquisition of Zero Carbon Technologies Limited (ZCT) and the potential benefits, outcomes, and impacts of the transaction. While ShiftCarbon believes that the expectations expressed in such forward-looking statements are grounded in reasonable assumptions, such statements are not guarantees of future performance. They involve inherent risks and uncertainties, including challenges in integrating Zero Carbon Technologies, spinning off the IoT SpinCo and Wishland Properties Ltd., potential unforeseen obstacles in the merger and spin-off processes, market reception, and broader economic and market conditions. Statements in this news release about Zero Carbon Technologies Limited (ZCT) and its capabilities to process battery types, develop battery recycling solutions, and address niche battery challenges are provided as forward-looking information provided to ShiftCarbon by ZCT within the context of the proposed acquisition by ShiftCarbon. These statements are subject to the same inherent risks and uncertainties associated with forward-looking statements, including the potential for changes in the regulatory environment, market conditions, and other external factors that could impact the realization of these expectations. As a result, actual outcomes and results may deviate significantly from those expressed in these forward-looking statements. Readers are advised to exercise caution and not to place undue reliance on such statements. These forward-looking statements are made as of the date of this news release, and ShiftCarbon assumes no obligation to update or revise them to reflect new events or circumstances, unless explicitly required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178973