Hempalta Announces $2 Million Private Placement, Proposed Share Consolidation, and Expanding Nature-Based Carbon Program

Executive Summary

• Hempalta Corp. announced a non‑brokered private placement of up to 100 million units at $0.02 per unit, targeting gross proceeds of up to $2 million to fund its biochar carbon removal program and other growth initiatives.
• The company proposes a four‑for‑one (4:1) share consolidation to streamline its capital structure, pending shareholder and regulatory approval.
• Operational update: 29,448 verified carbon credits were issued for the 2024 growing season across 12,669 acres in eight countries; the firm expects ~100,000 credits annually from a planned 25,000‑acre hemp‑biochar program.

Key Details

• Private Placement Terms
• Up to 100 million units at $0.02 per unit → maximum gross proceeds of $2 million.
• Each unit = 1 common share + ½ common share purchase warrant.
• Warrants exercisable at $0.05 for 24 months after closing; each full warrant covers one additional share.

• Four‑month hold period on all securities; completion subject to TSX Venture Exchange acceptance.

• Use of Proceeds

• Advance biochar carbon removal program.
• Fund verification, marketing, and farmer onboarding for Hemp Carbon Standard.
• Support working capital needs.
• Pursue potential M&A transactions.

• Strengthen balance sheet.

• Proposed Share Consolidation

• Four‑for‑one (4:1) consolidation to be effected after financing closes.
• Expected post‑consolidation share count ≈ 49 million shares (assuming placement completion, before warrant exercise).

• Requires shareholder and regulatory approvals.

• Carbon Credit Verification & Sales

• 2024: 29,448 verified carbon credits (29,448 tCO₂) across 12,669 acres on 38 farms in Canada, USA, UK, Ukraine, Sweden, Germany, Australia.
• Portion of 2024 credits sold; remainder marketed via Cloverly, brokers, and other channels.

• 2025: >14,000 acres under management; final verification slated for H1 2026.

• Nature‑Based Carbon Program Expansion

• Development of a 25,000‑acre industrial hemp & biochar program targeting ~100,000 verified credits annually (ISO 14064‑2, Puro.earth).

• Engaged independent carbon removals advisory group to deliver: financial model, LCA, sustainability study, registry pathway selection, buyer/offtake discussions, and full MRV protocols.

• CEO Commentary

  “We've spent the past year repositioning Hempalta as a focused, verified, and credible player in the carbon markets… With verified credit sales, and growing corporate interest, we're entering 2026 with renewed optimism and tangible traction.”

Notable Quotes

• CEO (Name not provided): Emphasized the strategic shift from hemp processing to a low‑capital, carbon‑credit‑focused model and highlighted progress toward scaling the biochar program.