TORONTO, July 15, 2024 (GLOBE NEWSWIRE) — Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon flows” or the “Company”) today announced that the Jakarta State Administrative Court (the “Court“) has stated that the withdrawal by the Ministry of Environment and Forestry of the Indonesian Government (“MOEF“) of the Forest Use Business License (the “Concession license“) At the Rimba Raya Project (“Rimba Raya” or the “Project“) is void.
On July 11, 2024, the court ruled on the claim filed by PT Rimba Raya Conservation (“PT Rimba”) against the MOEF who challenged the revocation of the concession license by the MOEF and annulled the revocation of the concession license by the MOEF. The decision of the Court may be appealed by the MOEF during a period of 14 days from the date of delivery of the decision and as such does not yet have permanent legal force. The court’s interim order dated May 16, 2024 requiring MOEF to suspend the implementation of its decision regarding the revocation of the concession permit and resume operations on the project will remain in force during any appeal filed. by the MOEF.
For the financial period ending March 31, 2024, the company has determined the fair value of the Rimba Raya stream at zero as a result of the revocation of the concession license. The company will reassess the fair value of the Rimba Raya stream in the event of a change in the facts and circumstances surrounding the Rimba Raya project, the revocation of the concession license and Indonesia’s national carbon emissions regulations. The company continues to evaluate all legal options to protect its investment in the Rimba Raya project and strictly enforce its legal and contractual rights under the Rimba Raya flow.
For a comprehensive discussion on the risks, assumptions and uncertainties that could further impact the Rimba Raya Project and the Rimba Raya Stream, including but not limited to, regarding the legal status of the Concession License and the Rimba Raya Stream of the Company, investors are urged to read the section of the Company’s management discussion and analysis for the three months ended March 31, 2024, dated May 15, 2024, entitled “Strategy and Outlook – Indonesia Update”, the section of the Company’s Annual Information Form dated March 27, 2024 entitled “Risk Factors” and the press releases dated April 26, 2024, May 15, 2024 and May 21, 2024, copies of which are available on SEDAR+ at www.sedarplus.ca.
About carbon flows
Carbon flows aims to accelerate a net-zero future. We pioneered the use of streaming transactions, a proven and flexible financing 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 based on a shared commitment to sustainability and responsibility, 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 potential for carbon reduction or removal. The company has carbon credit streams and royalties related to more than 20 projects around the world, including high-integrity removal, reduction and avoidance projects based on nature-based, agricultural, engineering and community-based methodologies.
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ON BEHALF OF THE COMPANY:
Christian Milau Interim CEO
Phone: 647.846.7765
info@carbonstreaming.com
www.carbonstreaming.com
Investor Relations
investors@carbonstreaming.com
Media
media@carbonstreaming.com
Advice
The references to third party websites and resources in this press release are for informational purposes and should not be considered statements of the Company.
Cautionary Note Regarding Forward-Looking Information
This press 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 relate to activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking information, including but not limited to: statements regarding to the status of the concession license that PT Rimba holds with the MOEF; statements on the legal status of the Rimba Raya stream.
When used in this press release, words such as “estimates,” “expects,” “plans,” “anticipates,” “will,” “believes,” “intends,” “should,” “could,” “may” and other similar terminology is intended to identify such forward-looking statements. This forward-looking information is based on the Company’s current expectations or beliefs based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that could cause the company’s actual results to differ materially from those discussed in the forward-looking information, and even if such actual results are achieved or substantially achieved, there may be are of no guarantee that they will have the expected impact or impact on the business. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of the achievement or otherwise of such results. Factors that could cause actual results or events to differ materially from current expectations include: changes in the status of registration of the Rimba Raya project under Verra; the outcome of the final ruling regarding the revocation of PT Rimba’s concession license; general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in carbon credit prices and demand for carbon credits; changes in social or political views on climate change, carbon credits and ESG initiatives and subsequent changes in corporate or government policies or regulations and related changes in demand for carbon credits; limited operating history of the company’s current strategy; risks arising from competition and future acquisition activities; concentration risk; inaccurate growth strategy estimates; dependence on key management; impact of corporate restructuring; reputation risk; failures or delays in the timing of projects to be registered, validated and ultimately developed, verifying emission reductions or removals and issuing carbon credits (and other risks associated with carbon credit standards and registries); foreign activities and political risks, including actions by government agencies, including changes in or to government regulations, taxes 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 the inability of third party assessments, reports and projections to be accurate; dependence on project partners, operators and owners, including the inability of such counterparties to make payments or fulfill their operational or other obligations to the Company in accordance with the terms of contractual arrangements between the Company and such counterparties; the failure of projects to generate carbon credits, or natural disasters such as floods or fire that 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 stock 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 March 27, 2024 filed on SEDAR+ at www.sedarplus.ca.
All forward-looking information speaks only as of the date of this press 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 therefore undue reliance should not be placed on such statements due to the inherent uncertainty therein. Except as required by applicable securities laws, the Company disclaims any intention or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
