Carbon Streaming Corporation Stock Price, News & Analysis

Carbon Streaming Corporation (OTCQB: OFSTF), also listed on Cboe Canada under the symbol NETZ and on the Frankfurt Stock Exchange under M2Q, is a company focused on projects that generate high-quality carbon credits. According to its public disclosures, the company emphasizes projects that have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential.

Business focus and project portfolio

Carbon Streaming’s activities are centered on carbon credit streaming and royalty agreements. The company reports that these agreements retain a portion of cash flows from carbon credit sales, with stream-specific retention varying. Cash flows are influenced by realized carbon credit prices and the terms of each agreement. The company’s portfolio has included arrangements such as the Rimba Raya Stream, the Magdalena Bay Blue Carbon Stream, the Amazon Portfolio Royalty, the Sustainable Community Stream, and various reforestation and ecosystem restoration projects, as described in its news releases.

The company has also disclosed involvement in a carbon removal stream related to the Azuero Reforestation Project in Panama. Under the Azuero Reforestation Stream, Carbon Streaming paid an upfront deposit and holds an option to participate in additional funding during specified election periods. Depending on whether the option is exercised, the project is expected to restore thousands of hectares of degraded tropical forest and remove significant volumes of carbon dioxide equivalent, generating an equivalent number of carbon credits under Verra’s Afforestation, Reforestation & Revegetation methodology. The company expects to receive a defined share of the carbon credits generated through 2052, with an offtake arrangement in place for the credits it receives from the project through 2040.

Carbon credits and environmental projects

In its corporate updates, Carbon Streaming has reported holding carbon credits from projects such as cookstove and household safe water initiatives in countries including Uganda, Tanzania, Mozambique, and Malawi under the Community Carbon Stream. These projects are registered under standards such as Gold Standard and Verra, with specific project IDs and vintages disclosed. The company has indicated that it is engaged in discussions with various parties regarding the sale of its existing carbon credits and has described efforts to market this inventory.

Beyond individual projects, the company’s stated focus is on supporting initiatives that not only generate carbon credits but also contribute to environmental and social co-benefits. Its disclosures highlight attention to biodiversity and local community impacts alongside carbon reduction or removal outcomes.

Corporate strategy and financial positioning

Carbon Streaming has communicated a strategic focus on maximizing value from its existing portfolio while evaluating a range of strategic options. These options, as described in its news releases, include acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities, or continuing to operate as a public company. The company has emphasized efforts to improve financial sustainability through reductions in operating expenses, headcount, and vendor costs, and has reported periods of positive operating cash flow driven by settlements from carbon credit streaming and royalty agreements.

The company has also disclosed that it holds a significant cash balance and has no corporate debt, and that it continues to earn interest income on its cash. It has reported a substantial reduction in the number of individuals receiving full-time salaries, noting that only a small core team remains on salary and that certain senior roles do not receive cash compensation, as part of its cost reduction initiatives.

Legal proceedings and settlements

Carbon Streaming’s public disclosures describe multiple legal and arbitration proceedings related to its project portfolio. For the Rimba Raya Project, the company initiated arbitration and legal proceedings following a notice indicating an intent to abandon the project. It later entered into settlement agreements with Infinite-Earth Limited, its Indonesian subsidiary, and related parties. Key terms included a cash payment to Carbon Streaming, the surrender and cancellation of common shares previously issued in connection with a strategic alliance agreement, termination of existing contracts and legal relationships, and dismissal of arbitration and court proceedings, with mutual releases among the parties.

For the Magdalena Bay Blue Carbon Stream, the company reached a settlement with project counterparties, accepting abandonment of the project, retaining certain rights for a defined period should the project be reactivated, and agreeing to mutual releases. In relation to the Amazon Portfolio Royalty, Carbon Streaming has reported issuing notices of dispute and entering into repayment agreements with counterparties in arrears on minimum royalty payments, with obligations under the royalty suspended during repayment and the royalty deemed satisfied upon full repayment.

The company has also described initiating arbitration proceedings against Will Solutions Inc. in connection with the Sustainable Community Stream after terminating the purchase and sale agreement due to missed milestones and project development issues. In addition, it has reported a settlement with Citadelle Maple Syrup Producers’ Cooperative related to a planned afforestation and ecosystem restoration project, resulting in cash received and full resolution of a lawsuit. For the Feather River Reforestation Stream, the company has disclosed that it does not anticipate generating cash flow from the project and that the fair value of the stream is considered nil, while it evaluates legal avenues under the agreement.

Beyond project-specific disputes, Carbon Streaming has filed a statement of claim in the Ontario Superior Court of Justice against several former executives, directors, consultants, and associated entities, alleging actions that caused financial harm to the company. Certain defendants have filed counterclaims, which the company has stated it considers to be without merit, indicating its intention to defend its position.

Capital markets and shareholder matters

Carbon Streaming’s shares trade on multiple markets, including Cboe Canada, the OTCQB in the United States, and the Frankfurt Stock Exchange. The company has reported on shareholder matters such as annual general meetings, director elections, and auditor appointments. It has also provided detailed information on voting results at its annual general meeting, including the number of shares voted and the proportion of votes for and withheld for each director nominee.

The company has announced steps to address restrictive legends on share certificates held by certain U.S. investors who participated in financings around 2020 and 2021. It has described a process, developed with a service provider, to facilitate legend removal at no cost to qualifying investors, referencing U.S. securities law provisions and the use of a digitalized process to manage legend removal for a large group of shareholders.

In early warning press releases, Carbon Streaming has disclosed open-market purchases of its common shares and exercises of warrants by its chief executive officer through the facilities of the Cboe Canada Exchange. These disclosures detail the number of shares and warrants held before and after each acquisition, the resulting ownership percentages on an issued and outstanding and partially diluted basis, and the investment purpose of the acquisitions, in line with Canadian early warning reporting requirements.

Corporate governance and advisory support

The company has reported on its board composition through annual general meeting results and has highlighted the election of director nominees as set out in its management proxy circular. It has also announced the appointment of expert consultants to provide oversight, guidance, and strategic direction for significant litigation. These consultants bring experience in areas such as the mining sector, corporate transactions, contested takeovers, arbitration, and commercial litigation, according to the company’s news releases.

Carbon Streaming’s head office is located in Vancouver, British Columbia, Canada. Across its disclosures, the company reiterates its focus on projects that generate high-quality carbon credits and that aim to deliver environmental and social benefits, while it continues to manage its portfolio, legal matters, and strategic options.