AgTech Company shares its second quarter of financial reporting and details advances with Industrial Hemp Carbon Credits platform and Biochar product
Hempalta Corp. (formerly Trail Blazing Ventures Ltd.) (TSXV: HEMP) (‘Hempalta’ or the ‘Company’) has released its financial results for the three and nine months ended June 30, 2024. Hempalta’s unaudited interim condensed consolidated financial statements (the ‘Financial Statements’) and related management’s discussion and analysis (the ‘MD&A’) for the three and nine months ended June 30, 2024 are available on www.sedarplus.ca.
Financial Results
Revenue for the three months ended June 30, 2024 was $185,021, a 32% increase compared to the same period in 2023. Revenue for the nine months ended June 30, 2024 was $436,328, a 28% increase compared to the same period in the prior fiscal year. The increases are due to the Company increasing production of its hemp-based commercial and consumer products and expanding its distribution channels. Cost of sales for the three months ended June 30, 2024 was $220,916, a 56% increase compared to the same period in 2023. Cost of sales for the nine months ended June 30, 2024 was $497,587, a 48% increase compared to the same period in the prior fiscal year. Contributing factors to the increased cost of sales were the costs associated with scaling up operations to handle the increased sales, including increases in the cost of freight to retailers, production supply costs, and maintenance and repair costs. Net loss for the three months ended June 30, 2024 was $858,647 or $0.01 per share, a 182% increase compared to the same period in 2023. Net loss for the nine months ended June 30, 2024 was $2,008,330 or $0.02 per share, a 70% increase compared to the same period in the prior fiscal year. The increases are primarily based on higher general and administration costs due to the going public process, acquisition of a controlling interest in Hemp Carbon Standard Inc. (‘HCS’), and higher labour costs due to employee additions. For the three months ended June 30, 2024, there was also increased share-based compensation increasing the net loss. Net general and administrative expenses increased 222% and 95% for the three and nine months ended June 30, 2024 compared to the same periods in the prior fiscal year. The increases are primarily due to higher filing and listing fees and accounting and legal costs related to the going public process, acquisition of a controlling interest in HCS, higher labour costs due to employee additions, and increased share-based compensation.At June 30, 2024, the Company had cash of $1,712,587 and working capital of $1,927,064.
Acquisition of Hemp Carbon Credits Platform
In May 2024, the Company acquired a controlling interest of 50.1% in HCS (the ‘HCS Transaction’). The transaction marked a significant milestone in Hempalta’s focus on sustainable business practices and is expected to provide the Company with an additional revenue stream alongside its consumer packaged goods and commercial products divisions.
HCS operates a financial incentive program that rewards industrial hemp farmers on their sustainable carbon farming journey. HCS’s work is rooted in their mission to create a positive climate impact for future generations, while continuing to support the processing of industrial hemp into a wide array of products.
Progress with Industrial Hemp Carbon Credits
The demand for carbon credits is increasing as companies seek to reduce their carbon footprint and mitigate climate change. Industrial hemp possesses the capacity to absorb substantial amounts of carbon dioxide (‘CO2’) during its rapid growth cycle. HCS has been a pioneer in the generation of carbon credits derived from the industrial hemp crop life cycle.
HCS’s precision quantification methodology leverages cutting-edge remote sensing technology, ensuring the accurate measurement of CO2 removal within the biomass of the industrial hemp crop and associated topsoil. This approach guarantees transparency and integrity in carbon accounting and helps corporate buyers of HCS carbon credits to achieve their sustainability goals. By participating in the Voluntary Carbon Market, industrial hemp farmers can diversify their revenue streams and make meaningful contributions to climate change mitigation.
For 2024, HCS continues to enhance its industrial hemp carbon credit platform. To this point, HCS has achieved a 337% increase in total acres under management over 2023, which is the year the platform was established. For 2024, HCS has signed up 36 farms, 184 sites, and 13,556 acres in Canada, the United States, the United Kingdom, Ukraine, Spain, Portugal, and Australia. This is expected to result in the removal of over 50,000 tonnes of CO2 from the atmosphere, creating an equal amount of high-integrity, nature-based carbon removal credits which HCS plans to sell through the Voluntary Credit Market.
Introduction of Biochar
Hempalta has been working to actively develop new hemp-based products to complement its current products retailing in the market with the goal of creating additional revenue streams. Current products include animal bedding, pet litter, garden mulch, and hurd for hempcrete, which is a sustainable building material.
The Company has recently introduced biochar derived from industrial hemp to the market. Made by recycling industrial hemp biomass processed at a production facility or onsite at farmers’ fields, biochar is produced through a process called pyrolysis, which heats organic material at high temperatures at extremely low oxygen levels. This method traps carbon and creates a product that can be spread on agricultural fields, boosting soil organic carbon and supporting plant growth while continuing to sequester carbon and helping to generate high-value carbon credits.
Biochar presents an exciting opportunity for Hempalta and for farmers, allowing hemp and other plant and farm waste to be converted into a sustainable and valuable commodity that can generate revenue through carbon credits, which for high-quality biochar typically sell for between US$100 and US$200 per ton of CO2 sequestered.
Outlook
Darren Bondar, Hempalta’s President and Chief Executive Officer, said, ‘We continue to advance our business objectives by adding new revenue-generating streams related to industrial hemp and expanding our production capabilities. We’ve added a global hemp carbon credit platform that enables us to seek out new markets worldwide and participate in the growing carbon credit marketplace. We’re also diversifying to meet market demand and unlock new industrial hemp-based products such as biochar.’
Investor Updates
The Company will be presenting at the New York Venture Summit in New York City on September 4 and 5, 2024 and at the ArcStone-Kingswood Growth Summit in Toronto on September 26, 2024. Investors can stay updated on Hempalta’s investor announcements by subscribing to our mailing list. Click here to subscribe and join our community as we advance towards a greener future.
About Hempalta
Hempalta Corp. (TSXV: HEMP) is an agricultural technology company focused on harnessing the immense potential of hemp. The Company is pioneering the global hemp carbon credit industry and utilizing advanced agricultural technology to process industrial hemp at scale. Hempalta is the first company in Canada to introduce the creation and sale of hemp carbon removal credits in the Voluntary Carbon Market and offer corporate buyers the opportunity to secure such credits through its controlling interest in Hemp Carbon Standard Inc. Hempalta’s products are made from hemp grown sustainably in Alberta and processed using a state-of-the-art processing plant at its production facility in Calgary, Alberta. The Company is led by passionate advocates for industrial hemp who have years of operations, manufacturing, marketing, consumer packaged goods, and retail sales experience. Hempalta has been named a Top 10 Startup by Platform Calgary’s Launch Party and recognized as one of the 50 most investable clean technology companies by Foresight Canada. Learn more at www.hempalta.com.
HEMP TO BETTER THE PLANET.
For more information please contact:
Hempalta Corp. Darren Bondar President and Chief Executive Officer Email: info@hempalta.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
This news release contains statements and information that, to the extent that they are not historical fact, may constitute ‘forward-looking information’ within the meaning of applicable securities legislation. Forward-looking information is typically, but not always, identified by the use of words such as ‘will’, ‘expected’, ‘plans’, ‘enable’ and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding: the HCS Transaction being expected to provide the Company with an additional revenue stream; the Company’s anticipated benefits from the HCS Transaction; the demand for carbon credits increasing; industrial hemp farmers being able to diversify their revenue streams by participating in the Voluntary Carbon Market; the expected removal of over 50,000 tonnes of CO2 from the atmosphere resulting from the farms and sites signed up by HCS, the creation of an equal amount of high-integrity, nature-based carbon removal credits, and the plans of HCS to sell such carbon removal credits through the Voluntary Credit Market; the Company working to actively develop new hemp-based products with the goal of creating additional revenue streams; biochar presenting an opportunity for the Company; and the Company adding a global hemp carbon credit platform that enables it to seek out new markets worldwide and participate in the growing carbon credit market place. Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the ability of the Company to successfully implement its strategic plans and initiatives and the expected benefits therefrom; the anticipated benefits of the HCS Transaction; the ability of farms and sites currently signed up by HCS to grow hemp; and the ability of HCS to sell carbon removal credits through the Voluntary Credit Market. Although the Company believes that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Actual results may vary from those currently anticipated due to a number of factors and risks including, but not limited to: the risk that the benefits from the HCS Transaction will not be as anticipated; risks associated with general economic conditions; conditions in the carbon credit markets; adverse industry events; the risk that farms and sites currently signed up by HCS will not grow or be able to grow industrial hemp as anticipated or at all; the risk that HCS may not be able to sell carbon removal credits as anticipated or at all; adverse weather conditions affecting the growth of hemp; future legislative, tax and regulatory developments; and the ability of management to execute its business strategy, objectives and plans. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, except as required by applicable law.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220813
News Provided by Newsfile via QuoteMedia
This post appeared first on investingnews.com