Base Carbon Provides Corporate Update and Announces Investor Update Call

TORONTO, April 18, 2024 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (together, with affiliates, "Base Carbon", or the "Company"), is pleased to announce that it has received approximately US$10.7 million from the monetization of carbon credits generated from its Vietnam project. The Company will host an investor update call on Tuesday, April 23, 2024, at 11:00 a.m. Eastern Time to discuss recent project developments, 2023 financial results and the 2024 Company outlook. Registration instructions are provided below.

Highlights

• Base Carbon has received payment of approximately US$10.7 million from the Vietnam project offtaker in connection with delivery of approximately 1.85 million cookstove carbon credits.
• The Company anticipates receiving an additional offtake payment of approximately US$1.8 million over the coming days pursuant to delivery of an additional 320,887 water purifier carbon credits from the Vietnam project.
• Inclusive of the above, the Vietnam project is anticipated to generate approximately 6 million carbon credits and US$29.1 million in contracted carbon credit offtake sales for the Company over the next twelve months.
• Investor update call to be held on Tuesday, April 23, 2024.

Vietnam Household Devices Project Update

The Company has received payment of approximately US$10.7 million from the Vietnam project offtaker for the delivery of 1,854,496 carbon credits generated from the project. The Company expects to deliver an additional 320,887 carbon credits generated by the project for further payment of approximately US$1.8 million pursuant to the project offtake arrangement in the coming days.

In aggregate and inclusive of the above, the Company expects to generate approximately 6 million carbon credits from the Vietnam project for delivery to the project offtaker for contracted sales of approximately US$29.1 million over the next 12 months. The Company is anticipated to achieve 100% payback of all its project capital expenditures (approximately US$20.8 million) in 2024 and subsequently begin generating significant capital returns from that point forward.

Based upon an updated methodology recently adopted for the Vietnam project, the project is now expected to generate approximately 33 million carbon credits over the life-of-project, inclusive of the initial 7.4 million carbon credits contracted to Citigroup Global Markets Limited under a fixed price offtake arrangement.

Carbon credit methodologies, which have been approved by Verra (the project's carbon credit registry), regularly go through reviews and updates based on the latest science-based research to continuously improve the integrity of carbon credits issued by the registry. As previously disclosed, Verra introduced a new version of its cookstove and water purifier methodology (VMR0006 Energy Efficiency and Fuel Switch Measures in Thermal Applications, v1.2) in July of 2023. Although the revised methodology is not required to be applied to the project, which was registered with Verra in 2022, changes to the Vietnam project methodology were recently adopted voluntarily to align with the updated scientific reviews and to maintain what the Company believes are the most current market standards and best practices for projects of this type. The Company also believes that by adopting the latest science-based research, the Vietnam project carbon credits will be considered higher quality by the market with potential pricing upside as compared to carbon credits generated under the previous methodological standards. There has been no impact to the quantity or commercial terms of the initial 7.4 million carbon credits contracted for sale pursuant to the project's fixed price offtake arrangement.  

Investor Update Call

An investor update call will be held on Tuesday, April 23, 2024, at 11:00 a.m. Eastern Time (EDT). The management team will provide a business update and respond to investor questions via Zoom Webinar. Registration instructions are published below. The Company invites current and prospective shareholders to attend this business update call and Q&A session.

DATE: Tuesday, April 23, 2024
TIME: 11:00 a.m. EDT
LOCATION: Zoom Webinar. To receive the meeting link and passcode, please register here.
QUESTIONS: Please submit questions ahead of time to: [email protected].

Annual Meeting of Shareholders

The Company announces that it intends to hold its annual meeting of shareholders on June 25, 2024, with a meeting record date of May 10, 2024. Further information will be provided to shareholders.

Option Grant

The Company has approved and issued an aggregate grant of 4,325,000 options to purchase common shares of the Company to all directors, officers and employees. 2,037,500 options have an exercise price of $1.00 per common share and 2,287,500 options have an exercise price of $0.50 per common share. All options are subject to specific vesting provisions.

About Base Carbon

Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.

Media and Investor Inquiries

Base Carbon Inc.
Investor Relations
Tel: +1 647 952 3979
E-mail: [email protected]

Media Inquiries
E-mail: [email protected]

Cautionary Statement Regarding Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws relating to the focus of Base Carbon's business, the expected number and timing of carbon credits to be issued and the receipt of proceeds from the disposition of carbon credits. 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. 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.

In respect of the Vietnam household devices project, certain factors that influence the commercial success of such projects and successfully meeting the milestones related to such projects, including the timing and number of expected carbon credits, 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 work product, including monitoring reports, of each project's validation and verification body, (iii) project costs and carbon credit market prices, (iv) the verification of ongoing project monitoring reports and issuance of carbon credits by Verra, (v) changes to laws and regulation in applicable jurisdictions, and (vi) the Company has sufficient funds on hand to make carbon credit purchase price payments.

In respect of the Vietnam household devices project, certain assumptions that influence the commercial success of such projects, including the timing and number of expected carbon credits, include among other things: (i) distributed cookstoves and water purifiers perform to specification when used and participating households use the devices as contemplated by project estimates, (ii) the Company's in-country project partners, being SIPCO and the project offtaker, perform their obligations in connection with the development and operation of the projects, and (iii) continued participant involvement and public support of the voluntary carbon market.

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 management discussion and analysis for the Company's fiscal year ended December 31, 2023 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) 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.