VANCOUVER, BC, March 4, 2024 /CNW/ - Klimat X Developments
Inc. ("Klimat X" or the "Company") (TSXV: KLX) (FSE:
Q1C) is undertaking a transformational partnership to become
the world's first listed, vertically integrated carbon project
developer creating high value, technologically enabled
credits.
Highlights:
Name change and technology licensing and purchase
right.
- Klimat X name to change to ("CARBON DONE RIGHT"), aligning its business
vision and mission with new AI technologies and simplified
strategic rainforest planting focus and radical transparency.
- The partnership will enable the Company to unlock the full
potential of existing smallholder rainforest planting projects by
leveraging proprietary technology to create high value, best in
class carbon credits that offer positive ecological and social
outcomes
- The Company has already secured c. 57,000 ha of forest and
mangrove in Sierra Leone and
intends to use CQS to significantly expand the land area in
West Africa, where 90% of the of
land for reforestation is owned by smallholders
- Premium pricing in voluntary carbon markets is being driven by
trust, traceability, and transparency – 'CARBON DONE RIGHT' will be able to ensure its
credits remain a premium product
- The Company has entered into an operating, licensing and
purchase option agreement with Carbon Done Right, a tech-enabled,
carbon quantification platform dedicated to supporting small
farmers that own land used for carbon projects.
Dual listing on AIM
- The Company is seeking a dual listing of its shares on
London's AIM market, which the
Company believes will open it up to a new pool of investors and
future growth funding options.
- In advance of the dual listing, the Company has secured a
convertible bridge financing from a number of parties for
professional fees related to the process.
- AIM admission process is expected to conclude by early Q2
2024.
Rationale and benefits of technology and company name
change
The Company recognises that confidence in the voluntary carbon
markets has been eroded due to the poor practices of others. This
has included low levels of transparency among carbon project
managers and poor deals for governments of developing countries,
despite them holding most of the world's nature-based assets.
The Company believes it can lead the way for best industry
practice through the utilisation of Carbon Done Right's proprietary
remote sensing and monitoring technology called the Carbon
Quantification System (CQS™). Carbon Done Right has been created by
the KLX team and the AI technology is expected to be a
significant advancement in the precision, traceability and
accountability of the Company's carbon credit generation process.
To fully align its business vision and mission with the new
technology and simplified strategic focus and radical transparency,
the Company believes it is now logical to change its name to Carbon
Done Right.
CQS™ tracks, via satellite, each tree the Company plants
and uses tree level proprietary AI models that monitor the health
of each tree and accurately track carbon sequestration data for
farmers and customers. The technology will also connect with
smallholder farmers to ensure the value the Company creates from
the sales of carbon credits is shared fairly with land owning
families and that farmers get paid quickly using automated payment
tools.
The Company's most advanced existing projects in Sierra Leone aggregate land leases from
smallholder farmers who own unproductive, degraded land and
undertakes large scale restoration projects to plant a broad mix of
native tree species. Land leases are secured under independently
monitored Free and Prior Informed Consent rules. The Company has
planted 1400 ha of forest to date and 14 ha of mangrove and has a
previously announced pre-purchase agreement in place with BP Carbon
Trading to plant a minimum of 5000 ha that is expected to produce
up to 1.9 million tonnes of carbon credits over 30 years.
The Company intends to expand operations in Sierra Leone beyond the 57,000 ha that have
been secured to date to at least 100,000 hectares and will transfer
the same model to other countries across Africa, starting in Ghana and Liberia. Approximately half of all land
suitable for restoration in Africa
is held by smallholders.
Proposed Dual Listing on AIM
The Company also announces today its intention to complete a
dual listing of its shares on London's AIM market. The Board believes
that AIM will give the Company access to a new, large pool of
institutional and retail investors, providing future growth funding
options and complementing its existing listing on TSX-V. In advance
of the dual listing, the Company has secured a convertible bridge
financing of USD300k from a number of
parties. The Company has appointed advisers and expects the
admission process to complete by early Q2 2024. Further updates
will be provided in due course.
Commenting on the news, James
Tansey, CEO, said: "We are committed
to providing quality, transparent carbon credits and
simplifying the offset buying process. The incorporation of
proprietary technology will see us become a vertically
integrated business active in nature-based projects, reflecting our
mission to provide our buyers extraordinary levels of trust and
traceability along all aspects of the carbon offset supply chain
and live by our name Carbon Done Right. This is an exciting moment
for the Company and coupled with our AIM dual listing plans, we
look forward to updating on further progress soon."
Kevin Godlington, President
(designate), commented: "Carbon Done Right's unique
Carbon Quantification System ™ is going to provide unprecedented
insights into forest change and carbon capture at the individual
tree level. We are delighted to change our name to reflect the
technology as we align our business mission with its values of
innovation and transparency. We are excited to soon be
integrating this technology into our flagship projects in
West Africa and deliver greater
benefits to smallholder landowners and their communities."
About 'CARBON DONE RIGHT'
'CARBON DONE RIGHT' is
rainforest planting tech company and carries on the business of
developing validated and verified carbon credits from afforestation
and reforestation of degraded land areas and marine ecosystems,
including mangroves, for sale into international voluntary carbon
markets. In contrast to streaming and royalty companies,
'CARBON DONE RIGHT' works upstream
as a direct owner and operator of projects, addressing a key supply
constraint in the current market and the rapidly growing demand for
carbon credits in global voluntary and regulated markets. The
Company intends to achieve this by investing in the exploration,
restoration and management of terrestrial and marine systems that
can either be protected to enhance the sequestration of greenhouse
gases or restored from a degraded status to fully productive
ecosystems. 'CARBON DONE RIGHT'
will draw on the experience of a senior executive team and board
that provide access into key target jurisdictions through
relationships in the mining and natural resources sectors, combined
with decades of experience in carbon markets. 'CARBON DONE RIGHT' plans to deploy capital at
risk under various arrangements (including cooperation, assignment,
and production sharing agreements) with large landowners and
governments in various suitable jurisdictions around the world.
The company also announces that it intends to settle an
aggregate of C$45,234.47 of
indebtedness owed to a certain arm's length creditor through the
issuance of 301,563 common shares at a deemed issuance price of
C$0.15 per share. The indebtedness
relates to professional services rendered to the Company. The
Company determined to satisfy the indebtedness with common shares
in order to preserve its cash for working capital. The common
shares will be issued concurrent with this release. All common
shares issued in satisfaction of the indebtedness will be subject
to a four month hold period from the date of issuance.
On behalf of the Board of Directors
"James Tansey"
James
Tansey
Chief Executive Officer
&
Kevin Godlington
PRESIDENT
CARBON DONE RIGHT
Cautionary Note Regarding Forward
Looking Statements
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
This press release contains forward-looking statements and
forward-looking information (collectively "forward looking
statements") within the meaning of applicable securities laws.
Any statements that are contained in this press release that are
not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate", "will",
"intends" "expects" and similar expressions which are intended to
identify forward-looking information or statements. More
particularly and without limitation, this press release contains
forward looking statements and information concerning the company's
dual listing in the UK and the acquisition of various technology
licenses. and the ongoing business of the Company. Klimat X
cautions that all forward-looking statements are inherently
uncertain, and that actual performance may be affected by a number
of material factors, assumptions and expectations, many of which
are beyond the control of Klimat X including expectations and
assumptions concerning the Company and the risks associated with
launching and operating a technology based product. The reader is
cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the
control of Klimat X. The reader is cautioned not to place undue
reliance on any forward-looking information. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified
by this cautionary statement.
The forward-looking statements contained in this press release
are made as of the date of this press release, and Klimat X does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by securities law.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
SOURCE KLIMAT X Developments Inc.
