November 14, 2022 – Toronto, Ontario – Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF) (“Base Carbon”, or the “Company”) is pleased to announce its third quarter 2022 financial results. All financial references are denominated in U.S. dollars, unless otherwise noted.
In Q3 2022, the Company remained focused on the execution of its carbon development projects, including the Company’s Vietnam project involving the purchase and distribution of 850,000 fuel-efficient cookstoves and 364,000 water purifiers (the “Devices”). As of October 31, 2022, 710,975 Devices have been distributed to Vietnam households, representing 59% of the total project Devices. Relative to the initial project plan, distribution of Devices is currently ahead of schedule with anticipated completion in early 2023. As previously disclosed, Base Carbon has facilitated a contractual project offtake agreement applicable to the initial 7.4 million carbon credits generated from the project, with first deliveries into the offtake anticipated in late H1 2022.
Distribution of cookstoves associated with the Company’s initial carbon reduction project in Rwanda is currently on schedule. 240,308 fuel-efficient cookstoves have been distributed as of October 31, 2022, representing 96% of the total devices underlying the Rwanda project. Full deployment of cookstoves is anticipated by the end of 2022.
Third-Quarter Corporate and Financial Highlights as of September 30, 2022
- On August 18, 2022, Base Carbon obtained approval to commence trading of its common shares on the OTCQX Best Market, under the ticker symbol “BCBNF”.
- Distribution of Vietnam Devices is currently 155,975 units ahead of initial project plan. Full distribution of Vietnam Devices is expected to be completed approximately four months earlier than originally contemplated.
- First issuance of carbon credits associated with the Vietnam Household Devices Project anticipated in late H1 2023.
- As of October 31, 2022, the Company has deployed 43% of the committed capital requirements for the Vietnam Household Devices Project.
- First issuance of carbon credits associated with the Rwanda Cookstoves Project anticipated in late H1 2023.
- As of October 31, 2022, Base Carbon has deployed 97% of the committed capital requirements for the Rwanda Cookstoves Project, with remaining capital of $300,000 targeted to fund household visits and initial monitoring, reporting and verification work.
- As of September 30, 2022, the Company had total assets of $52.4 million, mainly comprised of $24.8 million in cash and cash equivalents, $14.2 million in investments into carbon credit projects, $0.7 million in prepaid and other assets, a $1.3 million equity investment in AirCarbon and a $11.3 million investment in associate company, Hardwick Business Climate Limited.
- The Company had $0.4 million in accounts payable and accrued liabilities, comprising total liabilities.
- In Q3 2022, the Company incurred a net comprehensive loss of $3.3 million, of which $0.3 million was attributable to a realized foreign exchange loss, and $1.5 million was attributable to an unrealized foreign exchange loss. These foreign exchanges losses are a result of the U.S. Dollar strengthening sharply against the Canadian Dollar by approximately 6% quarter-over-quarter.
- Other operating expenses in Q3 2022 were attributable to consulting and professional fees, salaries and wages, and share-based compensation. The Company’s revenue lines are still being developed.
Marketing Campaign Engagement
The Company has engaged Native Ads Inc. (“Native Ads”) to execute a comprehensive digital media marketing campaign for the Company. The campaign is scheduled to run for up to 12 months for total payment of approximately $90,000 in cash allocated to content creation, web development, advertising creative development, search engine optimization, strategic digital advertising consulting and cost-per-click impression costs of media placements and distribution.
Native Ads is a full-service ad agency that owns and operates a proprietary ad exchange with over 80 integrated SSPs (supply-side platforms) resulting in daily access to three to seven billion North American ad impressions. The Company and Native Ads act at arm’s length, and Native Ads, including its directors, officers, and employees, has no present interest, directly or indirectly, in the Company or its securities.
About Base Carbon
Base Carbon, through Base Carbon Capital Partners Corp., provides capital, development expertise and management operating resources to projects involved primarily in voluntary carbon markets and the broader environmental, social and governance (ESG) economy. Base Carbon seeks to be the preferred and trusted carbon project partner in providing capital and developmental resources to carbon projects globally and, where appropriate, endeavours to develop and utilize technologies within the evolving carbon industry to enhance efficiencies, commercial credibility, and trading transparency.
For more information, please visit www.basecarbon.com.
ON BEHALF OF THE COMPANY:
Manager, Investor Relations
Tel: +1 647 952 3979
Cautionary Statements Regarding Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business, the Company’s carbon reduction projects and financial results of the Company. Any such forward-looking statements may be identified by words such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, Base Carbon’s strategic plans and details of development timelines of current projects are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements.
In respect of the Company’s carbon credit projects, the Rwanda Cookstoves Project and the Vietnam Household Devices Project, and additional contemplated carbon reduction projects described herein, certain factors that influence successfully meeting the milestones related to such projects include, among other things: (i) the Company has retained industry leading experts/consultants/advisors to assist with the evaluation, planning, negotiation and execution of such projects, (ii) the timelines for execution of the development of the Rwanda Cookstoves Project and the Vietnam Household Devices Project has to date been in line with (or accelerated from) initial expectations, (iii) in respect of the Rwanda Cookstoves Project and the Vietnam Household Devices Project, relationships with manufacturers and distributors to manufacture and distribute the requisite amount of devices as required under such projects have been secured and such devices have been manufactured as required to date in anticipation for distribution, (iv) the timelines with respect to the execution of additional carbon reduction projects has to date been in line with expectations, (v) in respect of the Company’s additional carbon reduction projects, the Company does not currently foresee significant conditions precedent after the pertinent definitive documentation has been executed before the related capital for such projects is able to be deployed, and (vi) the Company has sufficient funds on hand to complete the execution of its stated milestones for the Rwanda Cookstoves Project and the Vietnam Household Devices Project, and additional contemplated carbon reduction projects described herein.
In respect of the Company’s carbon credit projects, the Rwanda Cookstoves Project and the Vietnam Household Devices Project, and additional contemplated carbon reduction projects described herein, certain assumptions that influence successfully meeting the milestones related to such projects include, among other things: (i) in respect of the Rwanda Cookstoves Project and the Vietnam Household Devices Project, the development thereof remains in line with anticipated timelines and costs, the manufacturers and distributors contracted by the Company in respect thereof satisfy their obligations as expected by the Company and on expected timelines, and the local participants in the projects utilize the devices supplied to them in accordance with the expectations under the projects, and (ii) in respect of the Company’s additional carbon reduction projects, the Company is able to successfully execute definitive documentation in respect of such projects and on the expected timelines, the execution of such projects remain consistent with anticipated timelines and costs, and the conditions precedent for the deployment of capital thereunder, if any, are satisfied by the counterparties involved in such projects in a timely fashion.
Base Carbon assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results unless required by applicable law. When available, readers are encouraged to refer to the Company’s management discussion and analysis on www.sedar.com for information as to certain risks and other factors which may affect Base Carbon’s business objectives and strategic plans.