Hempalta Corp, a publicly traded agricultural technology company, announced on December 10, the complete acquisition of the remaining 49.9% interest in Hemp Carbon Standard Inc. (HCS), granting them full ownership of the carbon credit platform. This strategic move strengthens Hempalta's position as a leader in the hemp carbon credit industry.

The transaction involved acquiring 20,399,999 Class A common voting shares of HCS held by Climafi Ltd. for a total consideration of C$90,000 cash payment on closing. Potential earnout of C$75,000 contingent on selling remaining 2023 carbon credits before September 30, 2025, for a minimum of US$359,050. And a potential earnout of C$335,000 contingent on selling 2024 carbon credits before September 30, 2025, for a minimum of US$1,250,000.

This acquisition grants Hempalta full operational control of HCS's proprietary methodologies and technology for measuring, reporting, and verifying carbon credits derived from industrial hemp farming.

Hempalta's integration of HCS strengthens their ability to expand their reach in the voluntary carbon market (VCM). HCS's methodologies empower industrial hemp farmers to profit from carbon removal credits, promoting sustainable practices and contributing to global carbon reduction efforts. With the rising demand from corporate buyers for nature-based carbon solutions, this acquisition ensures Hempalta can scale its offerings and continue delivering high-quality carbon credits.

HCS witnessed a remarkable 337% increase in managed acreage in 2024 compared to the previous year, managing a total of 13,556 acres across Canada, the US, and various international markets. They anticipate certifying approximately 50,000 credits from the 2024 growing season. Full control of HCS allows Hempalta to further expand these numbers, guaranteeing robust and certified carbon credit solutions for their customers.

Hempalta's Biochar Initiatives

Beyond carbon credits, Hempalta has recently ventured into biochar production, adding it to their suite of hemp-based products. They launched Biochar.ca to market this new product, available for consumer purchase online and for commercial purchase through direct contact with Hempalta. Biochar, created through pyrolysis, not only improves soil health but also generates valuable carbon credits. Hempalta is also exploring strategic options for high-capacity, large-scale biochar production.

About Hempalta Corp.

Hempalta Corp is a publicly traded agricultural technology company. They focus on unlocking the immense potential of industrial hemp through the use of advanced agricultural technology for large-scale processing. Their products are derived from sustainably grown hemp in Alberta and processed at their state-of-the-art facility in Calgary. Through their wholly-owned subsidiary, Hemp Carbon Standard Inc., Hempalta also participates in the global hemp carbon credit industry.