TORONTO, May 18, 2023 -- Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF) ("Base Carbon", or the "Company"), a financier and developer of emission reduction, removal, and related climate action projects, announced that Verra has issued the first carbon credits (“VCUs”, or “Verified Carbon Units”) generated from the Vietnam Household Devices Project (the “Project”). All financial references are denominated in U.S. dollars, unless otherwise noted.
- First issuance totaling 1,020,903 VCUs associated with the cookstove component of the Project.
- First carbon credits generated from the Project’s water purifiers anticipated to be issued in the near term.
- Citigroup Global Markets Limited (“Citigroup”) is contracted to purchase the first 7.4 million carbon credits generated from the Project. Delivery of the first VCUs to Citigroup and settlement process is underway.
- Kwesi Marshall has been appointed Chief Financial Officer of the company and Wes Fulford has transitioned to the role of President.
The first 1,020,903 Project VCUs were generated during a verification period running from January 7, 2022, to November 30, 2022, and includes carbon credits generated by 670,962 cookstoves which were deployed at various times throughout the verification period. The Company anticipates first revenues from the delivery of the VCUs into the Citigroup offtake agreement in the coming weeks, as well as a near-term VCU issuance related to the water purifier component of the Project.
As previously disclosed, Project partner Sustainability Investment Promotion and Development Joint Stock Company has completed the full distribution of the Project devices, an aggregate of 850,000 fuel-efficient cookstoves and 364,000 water purifiers. As of March 31, 2023, Base Carbon has funded 90% of the committed $20.8 million in project capital with remaining commitments primarily tied to 2023 and 2024 project monitoring activities.
“This first VCU issuance represents an important milestone for Base Carbon. The Project performance has exceeded our initial expectations and we are delighted to transition our business to near-term revenue generation as we continue initiatives to scale our business and portfolio of carbon projects,” stated Michael Costa, Chief Executive Officer.
Management Update and Officer Appointments
Kwesi Marshall has been appointed to the role of Chief Financial Officer of Base Carbon Capital Partners Corp. and Chief Financial Officer of the Company. Mr. Marshall is an ACCA qualified Chartered Accountant (CA) with 10 years in senior management as well as 9+ years expertise working in accounting and assurance within the Barbados offices of PricewaterhouseCoopers. Kwesi will oversee management of the accounting, financial planning, and finance functions.
Concurrent with this appointment, Wes Fulford has been appointed to the role of President of Base Carbon. As a founder of the Company and Chief Financial Officer from inception, Mr. Fulford will lead the capital markets, corporate development, and finance functions, as well as continue to lead various strategic initiatives for the Company. Mr. Fulford is a seasoned entrepreneur who has spent the last 5 years building and leading companies within the financial technology, environmental market and blockchain sectors. Wes spent the first 15 years of his career in asset management and investment banking and is a CFA charter holder.
Stock Option Grant
The Board has approved a stock option grant of 540,000 stock options to acquire common shares of the Company which were granted to certain officers and employees. Each of the stock options is subject to vesting provisions and exercisable for a 4-year term expiring on May 18, 2027. 470,000 stock options have an exercise price of $1.00 per common share and 70,000 stock options have an exercise price of $0.50 per common share.
About Base Carbon
Base Carbon provides capital, development expertise and management operating resources to projects involved in the voluntary carbon markets. The Company seeks to be the preferred carbon project partner in providing capital and developmental resources to carbon projects globally and, where appropriate, will endeavour to utilize technologies within the evolving carbon industry to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.
Media and Investor Inquiries
Base Carbon Inc.
Tel: +1 647 952 3979
Michael Costa, Chief Executive Officer, and Ryan Hornby, Chief Legal Officer are responsible for this press release.
Cautionary Statement Regarding Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws with respect of the Company, including but not limited to, statements relating to the focus of Base Carbon’s business and anticipated revenues from the offtake of carbon credits from the Vietnam Household Device Project. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. Statements about, among other things, Base Carbon’s strategic plans and anticipated revenues are all forward-looking information. These statements should not be read as guarantees of future performance, results, or achievements.
Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.
The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedar.com) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.