TORONTO, November 15, 2023–(BUSINESS WIRE)–Carbon Streaming Corporation (NEO: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) today announced that its board of directors (the “Board of Directors”) has initiated the next phase of a restructuring plan, a strategic review process, with the continued goal of ensuring the Company’s competitiveness and long-term sustainability. The Board of Directors has also established a special committee of non-executive, independent directors (the “Special Committee”) to assist with oversight of the strategic alternatives review.
Mr. Swan, Chair of the Board of Directors and member of the Special Committee stated: “The restructuring plan implemented in 2023 has continually focused on ensuring that the Company maintains its competitiveness and sustainability, while focusing on optimization of cash reserves. We believe that Carbon Streaming is uniquely positioned to create shareholder value through its diversified investment portflio and robust sales pipeline.” Mr. Swan continued, “The strategic review process is the next step to ensure that Carbon Streaming continues to grow with the evolving voluntary carbon markets.”
Progress to Date
As previously announced, in response to changing conditions in the voluntary carbon markets and to ensure the Company’s competitiveness and long-term sustainability, the Company has initiated a corporate restructuring which is focused on cash flow optimization.
To date, the Company has made significant progress reducing operating expenses, including headcount reductions, a sublease of its Toronto office space and the optimization of other expenses. These steps have resulted in total operating expenses decreasing by $3.9 million for the nine months ended September 30, 2023 when compared to the prior-year period.
The Company has also been actively involved in reviewing its existing carbon credit stream and royalty portfolio to recalibrate its agreements in light of evolving vountary carbon market conditions, including an increased focus on carbon removal credits and North American based projects. To date, the Company has amended the terms of the Nalgonda Rice Farming Stream, Waverly Biochar Stream and Magdalena Bay Blue Carbon Stream. See the Company’s management’s discussion and analysis for the nine months ended September 30, 2023 dated November 14, 2023 and filed on SEDAR+ at www.sedarplus.ca for more information.
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