Newly public AgTech Company continues to push forward with modernization and diversification of the industrial hemp market
Calgary, Alberta--(Newsfile Corp. - June 25, 2024) - Hempalta Corp. (TSXV: HEMP) ("HEMPALTA" or the "Company"), an agricultural technology company focused on harnessing the immense potential of hemp, today announced a new biochar product derived from industrial hemp and shared a number of corporate updates, including a name change for its processing division, expansion of those operations, and the granting of stock options.
"We're constantly working to find new ways to use industrial hemp to develop products including our new biochar product which the market wants, and which benefits the environment. We've also been successfully broadening our business focus by developing a global platform that can leverage the high carbon sequestration aspect of industrial hemp to assist hemp farmers in monetizing carbon removal credits on the voluntary carbon market," said Darren Bondar, HEMPALTA's President and CEO.
New Biochar Product
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 is introducing biochar derived from industrial hemp to the market. Made by recycling industrial hemp biomass processed at the Company's production facility in Calgary 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 the Company 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 US$200 per ton of CO2 sequestered.
Carbon Removal Credits Update
In May 2024, the Company acquired its 50.1% controlling interest in Hemp Carbon Standard Inc. ("HCS"), the world's leading carbon removal program for industrial hemp farming.
HCS has begun making progress in the sale of carbon removal credits to corporate clients and other buyers. This includes a recent agreement for the sale of 514 carbon removal units to Concordium, a Layer 1 blockchain with built-in ID verification.
HCS employs advanced methodologies and monitoring technologies to ensure precise carbon sequestration for industrial hemp, which not only removes CO2 from the atmosphere but also enhances soil health and supports regenerative agriculture. The approach helps guarantee transparency and integrity in carbon accounting and enables corporate buyers of HCS carbon credits to achieve their sustainability goals. By participating in the Voluntary Carbon Market (the "VCM"), industrial hemp farmers can diversify their revenue streams and make meaningful contributions to climate change mitigation.
To date in 2024, HCS has signed up 36 farms, over 184 sites, and 5,486 hectares (13,555 acres) in Canada, the United States, Ukraine, the United Kingdom, Spain, Portugal, and Australia - which is forecast to result in the removal of approximately 54,000 tonnes of CO2 from the atmosphere, creating an equal amount of high-integrity, nature-based carbon removal credits which the Company plans to sell through the VCM.
Name and Expansion of Processing Operations
The Company announced its subsidiary, Hempalta Inc., has changed its name to Hempalta Processing Inc. The new name better reflects the subsidiary's core business activity which is the processing of industrial hemp into consumer and commercial products at the Calgary production facility.
The Company also announced that expansion of the production facility by approximately 6,500 square feet is underway with preliminary required approvals achieved. The expansion will enable Hempalta Processing Inc. to increase processing capacity to meet the growing demand for hemp-based products.
Stock Option Grant
HEMPALTA has granted 1,825,000 stock options to its directors, officers, and employees pursuant to the Company's stock option plan. Each stock option is exercisable to purchase one common share in the capital of the Company at $0.17 per share until June 24, 2029. One-quarter of the stock options vested on the date of grant, one-quarter will vest one year following the date of grant, one-quarter will vest two years following the date of grant, and one-quarter will vest three years following the date of grant.
Outlook
"We're very pleased to be launching the biochar product derived from industrial hemp. It complements our existing suite of products, which includes animal bedding, pet litter, garden mulch, and hurd for hempcrete. Biochar offers environmental benefits by sequestering carbon and improving soil health. Additionally, we're positioned to play a unique role in the growing carbon credit marketplace with our suite of nature-based solutions, helping farmers and corporate clients achieve their sustainability goals," said Bondar. HEMPALTA's next quarterly financial results are due to be released in late August 2024.
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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 CEO 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", "anticipated", "plans", "forecasted" 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 expansion of the production facility enabling Hempalta Processing Inc. to increase processing capacity to meet the growing demand for hemp-based products; the forecasted removal of over 54,000 tonnes of CO2 from the atmosphere by the farms and sites signed up by HCS so far; and the creation of an equal amount of high-integrity, nature-based carbon removal credits, and the plans of the Company to sell such carbon removal credits through the VCM. 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 derived from the Company's controlling interest in HCS; the ability of farms and sites currently signed up by HCS to grow hemp; the ability of the Company to successfully complete the expansion of the production facility; and the ability of the Company to sell carbon removal credits through the VCM. 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 expansion of the production facility will not be completed; 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 the Company 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.
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