TSX Venture Market-listed carbon offsetting firm Klimat X Developments Inc (TSXV: KLX) is changing its name to Carbon Done Right Developments Inc and plans to gain a quotation on AIM early in the second quarter.
The company was a cash shell known as Earl Resources before the acquisition of the Klimat X business in June 2022. The current share price is C$0.07 (C$0.065/C$0.075) and the market capitalisation is C$6.58m (Carbon Done Right Developments Inc Com (KLX) | TSXV Stock Price | TMX Money). There were 250,100 shares traded on Monday.
The company has 57,000 hectares in Sierra Leone and there are plans to increase this to 100,000 hectares. This is unproductive land leased from small farmers. So far, 1,400 hectares of forest and 14 hectares of mangrove have been planted.
There is another project underway in Yucatan, Mexico. That involves restoration of up to 40,000 hectares of degraded mangrove and the joint venture partner is Imperative Global Projects.
The company has entered into an operating, licensing and purchase option agreement with an entity called Carbon Done Right, which is a technology enabled, carbon quantification platform. The remote sensing and monitoring technology is called Carbon Quantification System. This tracks each tree planted, which provides transparency for carbon project managers.
Revenues are still modest with C$69,000 in 2022 and C$129,000 in the nine months to September 2023.
At the end of 2022, net assets excluding non-controlling interests were C$8.55m. By the end of September 2023, the figure was C$6.14m. That included C$582,000 in cash.
A carbon credit offtake agreement with a Fortune 100 company, which will buy carbon credits from the Sierra Leone rewilding project. This has generated C$664,000, which is included in the balance sheet as deferred revenue.
Klimat X has secured a convertible bridging loan to help to fund professional fees charged in the process of coming to AIM.