Abaxx Expands Carbon Market Investments with Base Carbon Corp. Formation, AirCarbon Follow-on Investment
TORONTO, July 15, 2021 (GLOBE NEWSWIRE) — Abaxx Technologies Inc., (NEO:ABXX) (OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial technology (fintech) company, majority shareholder of Abaxx Singapore Pte. Ltd., the Abaxx Commodity Exchange, and producer of the SmarterMarkets™ Podcast, is leading the formation of a new venture, Base Carbon Corp. (“Base Carbon”). Base Carbon will be an independent company with its own balance sheet.
- Expands Carbon investments with creation of Base Carbon Corp.
- Base Carbon platform is being assembled with experienced management, existing revenue streams, and a pipeline of future business.
- Abaxx’s pending technology license to Base solves major carbon credit industry problems including measurement, verification and reporting.
- Second-tranche follow-on investment into AirCarbon Pte. Ltd, owner of AirCarbon Exchange, increasing Abaxx group ownership in AirCarbon to approximately 7.5%.
Base Carbon Formation and Opportunity
Base is negotiating exclusive access to project portfolios and specialist teams in addition to existing and pending credits filtered for quality and revenue potential. As a multi-opportunity “platform of platforms”, Base Carbon intends to raise and deploy capital across the carbon credit market ecosystem in a risk-adjusted manner as carbon markets evolve with increasing regulatory clarity and market maturation driven by industrial and societal awareness and demand. The Base Carbon management team have decades of experience leading sourcing, management and financing carbon projects across the carbon and environmental market ecosystem.
Abaxx AirCarbon Investment and Subsequent Contribution to Base Carbon
Under the terms of the LOI announced on February 11, 2021, Abaxx has completed a 2nd follow-on investment into AirCarbon Pte. Ltd. for approximately US$1.1M, increasing Abaxx’s ownership in the company to 7.5% on a fully diluted basis. Management and Directors of Abaxx have been extremely pleased with the progress and growth of AirCarbon Exchange as the company continues to develop and deliver carbon futures products and carbon mitigating solutions using traditional commodities architecture.
In a subsequent transaction to be completed over the coming days, the Board of Directors of Abaxx have made the strategic decision to sell 2/3 of the Company’s pro forma ownership interest in AirCarbon to new venture Base Carbon, on the same terms and conditions as the initial and follow-on Abaxx investment into AirCarbon. Following the completion of this transaction, Base Carbon will own a 5% direct interest in AirCarbon and will obtain the right to appoint one director to the board of AirCarbon. This investment will serve as one of several cornerstone assets within the initial Base Carbon portfolio.
“Abaxx retains significant exposure to AirCarbon, through 2.5% direct ownership in the company, and indirect exposure through Abaxx’s large majority shareholding in Base Carbon as incubator and formation partner. Furthermore, as we move towards the commercial launch of Abaxx Exchange later this year, we believe this is a strong defensive measure to protect our balance sheet as we focus on our core service offering, while optimizing our strategy and exposure to this rapidly growing marketplace.” said Josh Crumb, CEO of Abaxx.
Abaxx Technology Partnership with Base Carbon
This formation of Base Carbon presents an opportunity for strategic deployment of the technology infrastructure and tools that Abaxx has developed for the Singapore-based Abaxx Exchange. The ID++ protocol is perfectly suited for integration with the myriad of “first mile” technologies and data capture projects all over the world.
Abaxx has a pending licensing agreement with Base Carbon for the deployment, support and continued development of its technology infrastructure and tools related to software based MVR, developed on blockchain digital-identity based suite of modular and integrated services built on open Digital Identity standards (WC3 Verified Credentials and DID Resolvers). The functionality includes end-to-end encrypted instant messaging, voice and video with regulatory compliant transcription, document management and collaboration with multi-party digital signature capabilities, secure document and digital contract storage and transfer protocols.
The Abaxx protocol is perfectly positioned to function as the commercial operating system of the carbon and ESG economy connecting disparate data stores, and execution of real-time audits, authentications and legal agreements. Drone, satellite, moisture sensing, environment monitoring, data management and machine learning software tools, are critical to enabling trust and verification in this new generation of environmental markets. Abaxx has developed documentation, software infrastructure and tools to rapidly scale multiple projects and globally networked teams.
Base Carbon Founders
Mr. Costa was previously a Vice President and Portfolio Manager of Goodman & Company, Investment Counsel Inc. (Dundee Corporation) since 2013 where he was responsible for the oversight of multiple Canadian focused natural resource investment portfolios. From 2010 to 2012, Michael served as director with UBS Securities Canada and was responsible for managing the Fundamental Investment Group’s Canadian principal investment portfolio. Prior to joining UBS, he served as Vice President at both Goldman Sachs & Co. in New York, where he began his career in 2003, and Goldman Sachs Canada Inc., in Toronto. At Goldman Sachs Michael was a member of the Special Situations Group (“SSG”), a multi-strategy principal investment platform. Within SGG Michael was directly responsible for managing the Canadian Special Situations Group (“CSSG”) investment portfolio. He has successfully built and overseen multiple principal investment platforms as well as sourced, structured and executed numerous public and private debt and equity principal investments. He graduated cum laude with honours in Economics from Colgate University in Hamilton, New York and serves on the board of directors of Almonty Industries (TSX: “AII”) and Fortress Technologies (TSX-V: “FORT”).
Bruce previously held leadership roles in investment banking which include Managing Director and Global Head of Environmental Markets JP Morgan, where he led the strategy and global build out of the business. He is the former Managing Director and Global Head of Structured Trade, Commodity Finance and Risk Management for Rabobank. He consults in environmental markets, commodities, agribusiness investment and ESG including a Lead Advisor role in Carbon at Abaxx Exchange. He is currently on the Managing Board of Haygrove Ltd, a Non-Executive Director of M P Evans Plc, on the Advisory Board of Generation 10, a Founding shareholder and board member of The Real Wild Estates Company a U.K. based natural capital business. He has been advising some family office and private equity companies on voluntary carbon markets, developments of the Task force on Scaling Voluntary Carbon Markets, Paris Agreement and developments in emerging Natural Capital markets.
Bill is the Managing Director and Co-founder of AirCarbon Pte. Ltd., the world’s first digital carbon exchange. Previously he was a Managing Director of Standard Bank Plc. as the Global Head of Carbon Origination and Finance. Prior to Standard Bank, he was the CEO and a founding partner of Ecoinvest Carbon S.A., a joint venture company with Bunge S.A. and one of the world’s largest global carbon project developers. He has managed emerging market and high yield investments for more than 25 years. He holds a BA in Economics with a concentration in Mathematics from The College of Wooster, Ohio, and an MBA in International Management from Thunderbird – The American Graduate School of International Management
Mr. Fedak is a Founder and Chief Strategy Officer of Abaxx Technologies. An entrepreneur and business developer with 25 years launching seed stage ventures and commercialization strategies. He has successfully scaled ventures in emission capture technology in the California wine industry, environmental impact projects involving the global coffee industry and software technology including data networking, ecommerce systems, SaaS and machine learning platforms, and in resource industries including, base and precious metals. Over the course of his career, he has sourced private and public capital, analyzed market opportunities, designed sales, marketing and communications strategies, coordinated and aligned efforts among cross functional teams of engineers, scientists, programmers, marketers, attorneys and administrative operators. He holds a degree in Economics and Political Science from Western University.
About Base Carbon
Base (for the Benefit of Air, Sea, Earth) Carbon is a globally diversified asset development firm in the business of sourcing, financing, developing and trading carbon credits. The firm’s mandate is to be the preferred carbon project partner for financing, streaming, technology and access to markets. Base Carbon founders have decades experience in portfolio management, financial structuring, technology development, capital markets, environmental and carbon markets.
About AirCarbon Exchange
Launched in 2019, AirCarbon Exchange is a global exchange revolutionising the voluntary carbon market. The exchange currently has a 90-strong client base comprised of corporate entities, financial traders, carbon project developers, and other industry stakeholders. AirCarbon provides its clients with an efficient and transparent trading platform which is easy to use, frictionless and with the lowest commission fees available on the market.
The AirCarbon Exchange is a hybrid platform with a traditional central order book architecture familiar to all experienced traders. The exchange utilises the speed and efficiency of the Binance Smart Chain public blockchain to achieve atomic T-0 trade execution, clearing and settlement. The exchange’s core matching engine can currently match trades in the order ~10k per second. AirCarbon is also the world’s first carbon negative exchange, having offset its carbon emissions 12 months into the future with a commitment to maintain this practice going forward.
About Abaxx Technologies
Abaxx is a development stage financial software company that has created proprietary technological infrastructure for both global commodity exchanges and the digital marketplace. The Company’s formative technology increases transaction velocity, data security, and facilitates improved risk management for the majority owned, Abaxx Singapore Pte. Ltd. (“ACX”, “Abaxx Commodity Exchange”, or “Abaxx.Exchange”) – a commodity futures exchange that is seeking final regulatory approvals as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) with the Monetary Authority of Singapore (“MAS”). Abaxx is also the owner of the LabMag and KeMag iron ore assets, resulting from the reverse take-over of New Millennium Iron Corp, and the creator and producer of the SmarterMarkets™ podcast.
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