Hempalta Corp. Shifts Focus to Carbon Credits, Acquires Full Ownership of HCS

Hempalta Corp. (TSXV: HEMP), an agricultural cleantech company, has announced its financial results for the three months ended December 31, 2024, marking a significant shift in its business focus towards the high-growth carbon credit market. The Company's strategic move to acquire full ownership of Hemp Carbon Standard Inc. (HCS) positions it as a leading player in the voluntary carbon market.



Financial Results and Strategic Shift
As HEMPALTA sharpens its focus on the carbon credit market, the Company experienced a transition period in its financials during the last quarter. Revenue for the three months ended December 31, 2024, was $70,497, reflecting a planned transition from consumer packaged goods (CPG) sales to a scalable, high-margin carbon credit model. While this shift resulted in lower short-term revenues (a 41% decrease year over year), it positions HEMPALTA for long-term growth in the voluntary carbon market.

Cost of Sales for the three months ended December 31, 2024 decreased 38% to $84,162, compared to the same period in 2023, primarily due to lower production volumes and cost efficiencies as the Company streamlined its operations to align with its carbon credit focus. Net Loss for the three months ended December 31, 2024 was $432,281 ($0.00 per share), a 13% improvement over the same period in 2023, reflecting disciplined cost management and a one-time gain on debt settlement.

General & Administrative Expenses for the three months ended December 31, 2024 increased 79% year over year, primarily due to transaction fees associated with acquiring the remaining 49.9% interest in HCS, as well as lower expense allocations to cost of goods sold due to decreased production activity.

Financial Position & Shareholder Support
As of December 31, 2024, HEMPALTA had $182,768 in cash and $287,726 in working capital. While the Company completes its planned focus on HCS over the balance of the second quarter, major shareholders Darren Bondar and Prairie Merchant Corporation (the "Lenders") have extended a one-year term loan in the aggregate amount of $325,000 at 12% interest (the "Loan"). In connection with the Loan, the Company will issue a loan bonus to the Lenders of an aggregate of 5,416,667 common share purchase warrants (the "Warrants"), exercisable for a period of one year with an exercise price equal to $0.06 (the "Bonus"). The Warrants are subject to a hold period under Canadian securities laws, expiring four months and one day from the date of issuance. The Loan and the Bonus are subject to the approval of the TSX Venture Exchange.

Industrial Hemp Carbon Credits Platform
With full ownership of HCS, HEMPALTA is now poised to scale a unique, low-cost carbon credit platform focused on industrial hemp. This milestone marks a pivotal step in the Company's evolution toward becoming a leader in nature-based carbon removal solutions. The demand for high-integrity carbon credits continues to rise as corporations seek solutions to meet their net-zero commitments. Industrial hemp offers a unique advantage in carbon sequestration due to its rapid growth cycle and ability to store CO2 both in biomass and soil.

HCS has pioneered a precision quantification methodology using remote sensing and AI-driven monitoring, ensuring the accurate measurement and verification of CO2 removal. The platform empowers industrial hemp farmers to monetize regenerative agriculture practices while providing corporate buyers with premium carbon credits backed by robust science and technology.

Outlook
Darren Bondar, HEMPALTA's President and Chief Executive Officer, stated, "Our activity the past year has been focused on taking the company public for our investors and determining the best revenue-generating opportunities related to industrial hemp. To that end, we've achieved 100% ownership of a global hemp carbon credit platform that enables us to seek out new markets worldwide and participate in the growing carbon credit marketplace. Full ownership means we can now streamline operations, strengthen our technology platform, and provide value to our partners and investors through a low capex, highly scalable platform that enables farmers and corporate buyers to reduce their carbon footprints."

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 a publicly traded agricultural tech company processing industrial hemp at scale to produce a range of consumer and commercial products. Its proprietary processing technology, HempTrain, is capable of converting industrial hemp into high-volume, high-grade products. The Company's product range includes animal bedding, garden mulch, and construction materials such as hempcrete – a biocomposite material for construction and insulation made of hemp hurds and lime. Industrial hemp is highly versatile and can be grown in a variety of climates and soil conditions.