Up to US$15 Million Streaming Agreement for Pipeline of US-Based Reforestation Removals Projects, including Initial Stream for the Sheep Creek Reforestation Project in Montana, USA
US$2 Million Convertible Debenture Investment Alongside Mast’s Key Existing Shareholders
Carbon Streaming Corporation (NEO: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) is pleased to announce that it has entered into a project pipeline streaming agreement (the “Pipeline Agreement”) for up to US$15 million with Mast Reforestation SPV I, LLC (“Mast”), and its parent company, Mast Reforestation, to advance its pipeline of post-wildfire reforestation projects in the Western USA and signed its first carbon streaming agreement (the “Sheep Creek Reforestation Stream”) under the Pipeline Agreement for the Sheep Creek Ranch project (the “Sheep Creek Reforestation Project”) in Montana, USA. Concurrently, the Company is investing US$2 million into the parent company of Mast, through a convertible note, joining Mast’s existing investors, including Social Capital, Alexis Ohanian’s Seven Seven Six, DBL Partners, Marc Benioff’s TIME Ventures, and Elemental Excelerator, among others.
Agreement Highlights:
Under the Pipeline Agreement, Carbon Streaming will fund up to US$15 million into a pipeline of post-wildfire reforestation projects in the Western USA (the “Mast Reforestation Projects”), by entering into separate stream agreements for each project. The Mast Reforestation Projects are expected to be registered under the Climate Action Reserve’s (“CAR”) Climate Forward program and to be issued Forecasted Mitigation Units (referred to herein as carbon credits). Carbon credits generated by the Mast Reforestation Projects are expected to be sold at a premium price to typical Afforestation, Reforestation and Revegetation (“ARR”) credits due to the projects’ desirable geographical location and biodiversity benefits. Previous buyers of Mast’s carbon removal credits include Shopify and Time CO2. Under each stream agreement, Carbon Streaming will make an upfront deposit in exchange for receiving up to 100% of the carbon credits generated from Mast Reforestation Projects and will make ongoing payments to Mast for each carbon credit sold. The Sheep Creek Reforestation Stream is the first stream under the Pipeline Agreement and