CONNECT WITH US
Climate & Energy

Climate & Energy

Carbon Streaming Closes $6M Deal To Exit Community Carbon Stream

Carbon Herald logo

Published on

Add as a preferred source on Google
Carbon Streaming Closes $6M Deal To Exit Community Carbon Stream

Carbon Streaming has reached an agreement with Community Carbon and UpEnergy Group to terminate its Community Carbon Stream and transfer its remaining carbon-credit inventory in exchange for total consideration of $6 million.

The Toronto-based company said the transaction includes $2.35 million from its sale of certain CORSIA-tagged Tanzanian cookstove credits to a third-party buyer.

Another $1.47 million will come from credits sold by Community Carbon and UpEnergy, with those proceeds placed in escrow for Carbon Streaming. The remaining $2.18 million has also been deposited into escrow.

Carbon Streaming has already received the $2.35 million from its credit sale. The company expects to receive the remaining $3.65 million within 10 business days, provided the agreement’s closing conditions are satisfied.

Once the escrow funds are released, Carbon Streaming will transfer its remaining credits under the Community Carbon Stream, which will then be terminated. Both sides will also release future obligations to each other.

Chief Executive Marin Katusa said the revised transaction provides the company with the full $6 million upfront rather than payments over 12 months under an earlier arrangement that did not close.

“The current carbon credit market continues to be challenging,” Katusa said, noting that CORSIA-tagged credits have remained liquid while other credits in the portfolio have attracted limited or no buyer interest over the past year.

Carbon Streaming said it will continue focusing on its existing portfolio and pursuing asset recovery through litigation. The company also said it will evaluate acquisitions, divestments, financings and other strategic partnerships aimed at maximizing shareholder value.


Source link
Related Topics:Climate & Energy

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.