DevvStream Eyes NASDAQ Listing Via Focus Impact SPAC

DevvStream Eyes NASDAQ Listing Via Focus Impact SPAC

Time Stamp: September 14, 2023 1:12 PM
Source Node: 2275206

DevvStream Holdings Inc., a pioneering force in the tech-based carbon credits industry, has announced a merger with Focus Impact Acquisition Corp. The newly formed entity will be listed on the NASDAQ stock exchange under the ticker symbol “DEVS,” marking a significant milestone for both companies.

This merger is not just a business transaction; it’s a strategic alliance to accelerate DevvStream’s growth and market penetration in the rapidly growing carbon credit sector.

The Deal and Valuation

Upon completion, the merger agreement between DevvStream and Focus Impact will result in a new company name – DevvStream Corp.

The deal is valued at approximately $250 million. This includes $50 million in cash from Focus Impact and an additional $200 million from a PIPE (Private Investment in Public Equity) investment led by top-tier institutional investors.

This valuation reflects the high growth potential and the robust business model of DevvStream, which has been a leader in tech-driven carbon credits and sustainability solutions.

DevvStream existing shareholders will retain a majority stake, ensuring continuity in the company’s vision and operational excellence. The merger is subject to customary closing conditions, including regulatory approvals and the companies’ shareholders approval.

Once finalized, the proceeds from the deal will be used to fund DevvStream’s ongoing and future projects that reduce global carbon emissions. For instance, it has launched a groundbreaking Buildings and Facilities Carbon Offset Program (BFCOP) for building owners.

Market Potential and Partnerships for Efficient Carbon Credit Trading

DevvStream operates on a dual-pronged business model.

They invest in carbon offset or reduction projects, with investments typically ranging from $500,000 to $2.5 million. These projects are not just about offsetting carbon; they are about creating a sustainable future through tech-driven solutions.

DevvStream offers carbon management services, where they provide expertise in generating and trading high-quality carbon credits. They invest mainly in the design and documentation of projects that are eligible for carbon credits. And thus, they’re creating a revenue stream from the sale of these credits.

DevvStream continues to advance its current pipeline of contracted projects and has identified 140+ projects. DevvStream is forecasting net revenue of $13 million for the year 2024. This figure will quadruple to $55 million by 2025.

The global carbon market is a booming industry, valued at nearly $1 trillion as of 2022. DevvStream aims to carve a significant share of this market. The company is focusing primarily on compliance-based credits, which have a higher value and demand.

The company has entered into a strategic partnership with Devvio Inc., involving a licensing agreement for Devvio’s DevvX Blockchain Platform. This partnership will enable DevvStream to leverage blockchain technology for transparent and efficient trading of carbon credits.

Earlier this year, the carbon credit investment company also partnered with AgriLedger, a global advisement and consultative service specializing in carbon offset strategy.

Bridging Financing and Future Plans

In addition to the merger, DevvStream is in the process of raising up to $7.5 million through unsecured convertible notes. The funds will be for general working capital and to hasten the company’s growth plans.

The merger between DevvStream Holdings Inc. and Focus Impact Acquisition Corp. is a game-changer in the carbon credit market. It combines DevvStream technological prowess and market leadership with Focus Impact’s financial muscle. Together they’re setting the stage for rapid growth and expansion.

As the world grapples with climate change, the demand for sustainable and tech-driven solutions is at an all-time high. This merger positions DevvStream Corp. as a frontrunner in meeting this demand, offering promising returns for investors and a sustainable future for all.

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