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Hempalta Corp. Announces Definitive Agreement to Acquire Key Stake in Hemp Carbon Standard Inc.
Adding Industrial Hemp Carbon Credits will give HEMPALTA a sustainable, revenue-generating platfo...
About this update from Hempalta Corp
[{"type":"text","content":"Hempalta Corp. Announces Definitive Agreement to Acquire Key Stake in Hemp Carbon Standard Inc.Adding Industrial Hemp Carbon Credits will give HEMPALTA a sustainable, revenue-generating platform and help customers decrease C02 footprintCalgary, Alberta--(Newsfile Corp. - April 15, 2024) - Hempalta Corp. (formerly Trail Blazing Ventures Ltd.) (TSXV: HEMP) (\"HEMPALTA\" or the \"Company\") is pleased to announce that further to the strategic alliance agreement, dated October 15, 2023 (the \"Strategic Alliance Agreement\"), the Company has exercised its option to acquire a controlling interest in Hemp Carbon Standard Inc. (\"HCS\") (the \"Option\"). In connection with the exercise of the Option, the Company has entered into a definitive share purchase agreement (the \"Agreement\") among HCS, Climafi Limited (\"Climafi\"), and the Company, pursuant to which HEMPALTA will acquire 50.1% of the outstanding shares of HCS from Climafi (the \"Transaction\"). HCS carries on a business of providing an end-to-end solution to obtain high integrity carbon credits from industrial hemp farming and ancillary activities relating thereto. HCS has certain methodologies and technology to effectively monitor, report, and verify carbon credits derived from growing and processing industrial hemp. HCS has developed a sustainability payment program (the \"Program\") with the objective of creating a payment and co-funding mechanism for farmers, landowners, processors, and other entities (\"Participants\") to enable their transition towards sustainable agricultural practices. The Program utilizes certified methodologies to quantify, monitor, and verify the CO2 sequestration achieved by a Participant.The purchase price for the Transaction (and the exercise of the Option) shall be structured as follows: i) a cash payment of $40,000 to Climafi; and (ii) an aggregate of $2,000,000 in common shares of HEMPALTA (\"Hempalta Shares\") which are issuable at $0.16 per Hempalta Share, for an aggregate issuance of 12,500,000 Hempalta Shares to the shareholders of Climafi. Assuming all conditions in the Agreement are met or waived, it is anticipated that the closing of the Transaction will occur on or around April 30, 2024. The Transaction is an arm's length transaction and no finder's fees are payable in connection with the Transaction. The Transaction remains subject ...