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Hempalta Corp. (TSXV: HEMP) ("Hempalta" or the "Company"), a Canadian-based provider of nature-based carbon credit solutions, today issued a corporate update outlining recent developments in its strategic transition.
ÂEquipment Sale Update
ÂOn May 22, 2025, Hempalta announced its wholly owned subsidiary, Hempalta Processing Inc. ("HPI"), had entered into a US$1.15 million agreement to sell its hemp processing and biochar equipment (the "Transaction"). Despite follow up discussions and repeated assurances, the purchase price has not been paid to HPI; accordingly, HPI has retained ownership of all equipment and associated intellectual property and has reinitiated the asset sale process. Interested parties may contact the Company for additional details.
ÂFCC Forbearance Agreement
ÂIn connection with the termination of the Transaction, HPI, has entered into a forbearance agreement with Farm Credit Canada ("FCC") dated effective June 2, 2025. This agreement extends protection through June 30, 2025, providing HPI time to complete a revised monetization plan for its processing assets while maintaining transparency and compliance with its senior lender.
ÂCarbon Credit Market Momentum Continues
ÂThe Company's 2024 carbon credits now total 29,448 tonnes of COâ‚‚ removal across 12,669 acres under the Hemp Carbon Standard. These credits are available for purchase via the Company's Cloverly storefront (hempcarbonstandard.cloverly.app), and discussions with corporate buyers are ongoing.
ÂCEO to Speak at Canadian Climate Investor Conference
ÂHempalta President and CEO Darren Bondar will be speaking at the 2025 Canadian Climate Investor Conference hosted by the Toronto Stock Exchange (TSX and TSXV) on June 11, 2025, at the Arcadian Court in Toronto. Mr. Bondar will outline Hempalta's strategic pivot to nature-based carbon credit markets and showcase the scalable growth opportunity through its Hemp Carbon Standard platform.
ÂAbout Hempalta Corp.
ÂHempalta Corp. (TSXV: HEMP) is a Canadian clean-tech company focused on high-integrity carbon removal credits derived from industrial hemp. Through its wholly owned subsidiary, Hemp Carbon Standard Inc., the Company supports regenerative agriculture, biochar deployment, and AI-powered MRV to deliver transparent, verifiable carbon credits aligned with global climate goals.
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 Learn more at www.hempalta.com or contact Investor Relations at invest@hempalta.com.
ÂFor more information, please contact:
Â| Investor Relations Hempalta Corp. Email: info@hempalta.com Website: www.hempalta.com |   Hempalta Corp. Web: https://www.hempalta.com/ Email: info@hempalta.com | Â
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ÂNeither 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.
ÂForward-Looking Information
ÂThis news release contains statements and information that, to the extent 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 "expects," "plans," "continues," "intends," "anticipates," "potential," "aims," "will," and similar expressions, including negatives thereof.
ÂForward-looking information in this news release includes, but is not limited to, statements regarding: the Company's ability to complete the sale of its hemp processing and biochar equipment; the resolution of the outstanding forbearance with Farm Credit Canada (FCC);Â negative cash flow from operations and the Company's ability to operate as a going concern; the anticipated proceeds and timing of any asset sales; the scaling of the Hemp Carbon Standard platform; the sale of verified carbon credits; the development of new corporate offtake agreements; and the Company's broader growth initiatives under Hempalta carbon credit platform.
ÂSuch forward-looking information is based on assumptions and expectations, including but not limited to: the Company's ability to remarket and sell the equipment; continued support from major shareholders and new investors; demand for nature-based carbon removal credits; successful onboarding of additional farmers; favorable regulatory conditions; and Hempalta's ability to execute its strategic plan and secure necessary financing on reasonable terms.
ÂAlthough the Company believes the assumptions and expectations reflected in the forward-looking information are reasonable, undue reliance should not be placed on them, as actual results may differ materially due to known and unknown risks. These risks include, but are not limited to: economic conditions and capital market volatility; failure to close the asset sale or private placement; changes in carbon credit market demand or pricing; regulatory changes; inability to retain key personnel; weather-related challenges impacting hemp cultivation; and those risks set forth in the Company's public disclosure documents available on SEDAR+ at www.sedarplus.ca.
ÂForward-looking information in this news release is provided as of the date hereof, and the Company does not undertake to update such information except as required by applicable securities laws.
ÂNOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254819
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