TSXV: MKT OTC: MKTDF FRA: DEP
BloomX to Introduce Asia-based Carbon Credit Projects to DeepMarkit's Subsidiary, First Carbon Corp., through its MintCarbon.io Platform
CALGARY, AB, June 22, 2022 /CNW/ - DeepMarkit Corp., ("DeepMarkit" or the "Company") (TSXV: MKT) (OTC: MKTDF) (FRA: DEP), a company focused on transitioning the global carbon offset market to the more accessible digital economy by minting credits into non-fungible tokens ("NFTs"), is pleased to announce that it has signed a letter of intent ("LOI") with Bloom X Alliance Inc. ("BloomX") to form a referral arrangement (the "Arrangement"). Pursuant to the key terms in the LOI, DeepMarkit and BloomX are working to form the Arrangement through which BloomX will introduce and onboard carbon credit projects onto the blockchain through DeepMarkit's proprietary minting platform, MintCarbon.io. Based in Japan, BloomX is a blockchain-based products and services company seeking to reduce cost and improve efficiency of international asset transfers. It looks to participate and invest in blockchain-based products and services as well as other technology-enabled and related growth opportunities.
Through the Arrangement, DeepMarkit is expected to benefit from extensive and diverse exposure to numerous new carbon projects, as well as an increased level of validation in the ASEAN carbon offset community. MintCarbon.io is expected to receive increased transaction volume as a result of any and all users referred by BloomX that mint existing credits into NFTs. Pursuant to the Arrangement, BloomX will receive a fee for referring carbon projects to DeepMarkit, which will be payable by DeepMarkit in cash, or at DeepMarkit's discretion (subject to applicable laws), common shares of DeepMarkit. Under the terms of the LOI, DeepMarkit and BloomX will conduct necessary due diligence and negotiate the terms of a definitive agreement to govern the terms of the Arrangement. The ultimate structure of the Arrangement will be subject to applicable regulations as well as applicable securities, corporate and tax laws. The definitive agreement, and any transaction completed in connection therewith, may be subject to TSX Venture Exchange approval.
Currently, carbon emissions are traded over the counter in Japan. The Japanese Ministry of Economy, Trade and Industry and the Japan Exchange Group plan to create the country's first market for trading carbon emissions, launching a demonstration project in September 2022. The mechanism is planned to become fully operational in the fiscal year starting April 2023. With its new policy, the country aims to improve transparency in prices, encourage more companies to participate in the market and foster decarbonisation in its economy.1 As an example of a leader in the field, Hitachi has committed to achieving carbon neutrality in its Scope 1 and 2 emissions by 2030 and carbon neutrality in its Scope 3 emissions by 2050. In order to achieve this goal, Hitachi introduced an internal carbon price in 2019 and raised the price from the initial 5,000 yen(US$37) per tonne to 14,000 yen(US$104) per tonne in 2021.2
BloomX has an extensive network in the cryptocurrency community as its CEO is a member of the Crypto Valley Association, which is an independent, government-supported and world-leading blockchain organization based in Zug, Switzerland, which is helping it to build and expand blockchain-based services, such as NFTs and security tokens. In addition, an advisor of BloomX, Mr. Ken Mazzio, is well known as a risk and compliance executive in the cryptocurrency industry for obtaining virtual currency licensing and building strong, regulatory-compliant control environments for Japanese and Filipino crypto-exchanges. He was also a member of the V20 (Virtual Asset Service Providers) Summit held in Osaka, Japan in 2019.
Management Commentary
"BloomX is excited to be working with DeepMarkit to bring their robust and proprietary carbon credit minting platform, MintCarbon.io, to Japan. DeepMarkit, aligned with Gold Standard and Verra, has demonstrated its thorough understanding in the intricacies of carbon markets. By providing improved transparency in carbon credit pricing and transactions, we believe MintCarbon.io will make a notable impact on Japan's push toward becoming 'Net Zero by 2050' and encourage more companies to participate in the carbon market, thus accelerating decarbonization in Japan," said Rico Numano, CEO, Toshiro Azumi, Chairman and Ken Mazzio, Advisor, of BloomX Alliance Inc.
"The expected Arrangement with BloomX will work continue to open new doors for DeepMarkit in the vast Asian market. Asia-based Radiance Asset Berhad's support of MintCarbon.io has been critical, now supplemented by BloomX, DeepMarkit's footprint in the Asian markets is expected to expand at a faster pace. We look forward to working with BloomX to grow the MintCarbon.io platform's increasing presence in the Asian markets," said Ranjeet Sundher, CEO of DeepMarkit.
ABOUT DEEPMARKIT
DeepMarkit Corp. is a company focused on democratizing access to the voluntary carbon offset market by minting credits into NFTs. Its common shares are listed on the TSX Venture Exchange under the "MKT" stock symbol. DeepMarkit's wholly owned subsidiary, First Carbon Corp. ("FCC"), is a software infrastructure company operating in the tokenization vertical of the blockchain. FCC's primary asset, MintCarbon.io, is a web-based, software-as-a-service platform that facilitates the minting of carbon credits into NFTs (based on the ERC-1155 standard) or other secure tokens (based on the ERC-20 standard). MintCarbon.io is currently undergoing testing and FCC anticipates an official launch of the platform in the near future.
On behalf of:
DEEPMARKIT CORP.
"Ranjeet Sundher"
Ranjeet Sundher, CEO
Web: www.deepmarkit.com
Twitter: @DeepMarkit
Neither 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 news release.
CAUTIONARY STATEMENT
Statements in this news release may contain forward-looking information. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements, including statements with respect to DeepMarkit entering into a definitive agreement with BloomX and completing the transactions described hereunder, statements with respect to the benefits expected to be received from DeepMarkit from the Arrangement and statements relating to the Company's business and corporate plans. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of DeepMarkit, including, without limitation, failure to obtain necessary final regulatory approvals for the Arrangement, if required, or any other transactions described hereunder, failure to enter into a definitive agreement, the decision by BloomX or DeepMarkit to not complete the transactions as a result of due diligence investigations or as a result of regulatory or other legal considerations. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this press release are made as of the date of this news release and DeepMarkit does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
ENDNOTES:
- "Japan plans to create a pilot emission trading scheme in September 2022", Enerdata, May 16, 2022, accessed on June 15, 2022, https://www.enerdata.net/publications/daily-energy-news/japan-plans-create-pilot-emission-trading-scheme-september-2022.html
- "Achieving Carbon Neutrality for a Sustainable Society: Hitachi's Environment Strategy and its Work in Mobility", Hitachi, 2021, accessed on June 15, 2022, https://www.hitachi.com/rev/archive/2021/r2021_06/concept/index.html
SOURCE DeepMarkit Corp.
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