Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) announces that the State Administrative Court of Jakarta (the “Court”) has declared that the revocation by the Indonesian Government’s Ministry of Environment & Forestry (“MOEF”) of the Forest Utilization Business License (the “Concession License”) at the Rimba Raya Project (“Rimba Raya” or the “Project”) is void.
On July 11, 2024, the Court reached a decision on the claim filed by PT Rimba Raya Conservation (“PT Rimba”) against the MOEF challenging the MOEF’s revocation of the Concession License and declared the MOEF’s revocation of the Concession License to be void. The Court’s ruling is subject to appeal by the MOEF for a period of 14 days from the pronouncement of the decision, and as such does not yet have permanent legal force. The interlocutory decision issued by the Court on May 16, 2024, requiring the MOEF to suspend the implementation of its decree in respect of the revocation of the Concession License, and allowing activities on the Project to resume, will remain in place during any appeal brought by the MOEF.
For the financial period ended March 31, 2024, the Company determined the fair value of the Rimba Raya Stream to be nil due to the Concession License revocation. The Company will re-evaluate the fair value of the Rimba Raya Stream in the event there is a change in the facts and circumstances surrounding the Rimba Raya project, the revocation of the Concession License and the Indonesian national carbon emission regulations. The Company is continuing to evaluate all legal avenues to protect its investment in the Rimba Raya project and to strictly enforce its legal and contractual rights under the Rimba Raya Stream.
For a comprehensive discussion regarding the risks, assumptions and uncertainties that could further impact the Rimba Raya project and the Rimba Raya Stream, including without limitation, concerning the legal status of the Concession License and the Company’s Rimba Raya Stream, investors are urged to review the section of the Company’s management’s discussion and analysis for the three months ended March 31, 2024 dated as of May 15, 2024 entitled “Strategy and Outlook – Indonesia Update”, the section of the Company’s Annual Information Form dated as of March 27, 2024 entitled “Risk Factors” and the press releases dated April 26, 2024, May 15, 2024 and May 21, 2024.
