ShiftCarbon (TSXV: TSF, OTC: UTOLF), formerly named TraceSafe, has recently closed its oversubscribed private placement. The company offers complete decarbonized solutions and notably provides ShiftCarbon Measure (a carbon accounting tool for businesses of all sizes) and ShiftCarbon Offset (a carbon offset platform and API that allows businesses to purchase offsets or integrate them into their applications). The recent drop in the stock price offers an excellent opportunity to buy a stake in the company, which represents the future.

Company Overview

ShiftCarbon provides an intuitive platform for carbon accounting, offsetting and Measurement, Reporting, and Verification automation of carbon offsets using modular software and IoT sensor technology. The company’s flagship product, ShiftCarbon, is a comprehensive carbon management platform launched in August 2022. It is the company’s biggest launch since its award-winning platform for enterprise safety, AllSafe. Since the technology instigation, the company partnered with Green Marine to strengthen its decarbonization offerings for the marine industry, joined the United Nations accredited climate chain coalition, announced its changing name from TraceSafe to ShiftCarbon, and now it qualified for top carbon offset standards.

Amongst other trusted partners, the company works Green Marine, a voluntary environmental certification program for the North American marine industry. This membership will allow TraceSafe to connect with the Green Marine network, including over 40 ship owners, and to showcase its services helping them improve their environmental performance, and therefore help them achieve their environmental and carbon-neutrality goals.

"We are honored and excited to become a partner member of Green Marine, a leader in environmental stewardship for the marine industry. Their participants represent the most important names in the marine and shipping industry in North America and we can't wait to help them reach their climate goals with ShiftCarbon. We have a deep understanding of the maritime industry, and we are bringing those insights to our carbon management solutions and building something that will cater to the specific needs of the industry now and in future."

Wayne Lloyd, TraceSafe CEO

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This turn in business is an important milestone for the company. Global demand for voluntary carbon credits is supposed to increase by a factor of 15 by 2030 and then has a stellar growth with a factor of 100 by 2050. On top of the line, smart cities will be a significant market share for companies. According to the United Nations projections, 68% of the world’s population will live in cities by 2050. We will encounter intelligent and energy-efficient buildings in these smart cities and smart water and air quality management. On the forefront, Saudi Arabia’s smart city market size is projected to reach $14 Billion by 2027 and will create futuristic ‘smart cities’ at the center of urban living. NEOM is a visionary project representing this ‘smart city’ of the future. You could tell us that these cities will produce emissions anyways while governments try to top the “zero-net emissions.” The zero-net means we can still produce some emissions, as long as they are offset by processes that reduce greenhouse gasses already in the atmosphere.

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Board Management

Wayne Lloyd runs the company as CEO. Wayne is a technology entrepreneur active in tech M&A. He serves as an investor, trader, board member, and advisor to several technologies and fintech start-ups. At the head of carbon products, Qayyum Rajan runs the position. Qayyum Rajan is a prominent leader in North America’s finance and technology ecosystem. He is the founder of Offset- a carbon offset marketplace that TraceSafe recently acquired. Before launching  Offsetty, he served as the founder and CEO of ESG Analytics, an Artificial Intelligence startup for the environmental, social, and governance industry.

Financing Closed / Share Movement

ShiftCarbon announced on November 28 it had closed its oversubscribed private placement. It first consisted of a total value of $190k through the sale of 1,9M shares at a price of $0.10 per share. The final placement topped $656k through the sale of up to 6.5M shares. Each share is entitled to one warrant at an exercise price of $0.25 per share for a period of 24 months starting the date of issuance. Under this private placement, ShiftCarbon paid fees to eligible finders: an $18.3k finders fee in cash and 183k transferable warrants. Each finder warrant has an exercise price of $0.10 for a period of 24 months. The net proceeds from the offering are intended to be used primarily for costs related to the development and creation of new technologies and ShiftCarbon projects and working capital, and general corporate purposes.

The company’s stock price is steady around the last private placement’s valuation, $0.10, and has a market cap worth $5M. TSF is traded just above its 52-week low of $0.07 and is far from its 52-week high of $0.66. The company lost momentum because of the decrease in revenues generated from its health operations during the Covid pandemic, but the recent switch in business should comfort shareholders.

As a reminder, the company’s revenue decreased to $256k for three months ended September 30, 2022, compared to the 2021 comparable period of amount of $6M. Besides, the cost of sales significantly decreased to $52k compared to the 2021 comparable period of $3.4M, which is in line with the change in revenue.

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Bottom Line

ShiftCarbon (TSXV: TSF, OTC: UTOLF) is currently at an exciting valuation to get in. The company closed an oversubscribed private placement that reached $656 at a price of $0.10 per share, and the stock price is currently at this level, offering a support zone. Keep in mind warrants have an exercise price of $0.25, which means investors saw the opportunity in the company and believe in the increase in ShiftCarbon’s valuation. Even if the company’s revenues decreased, it is because ShiftCarbon takes a turn in its business model. With zero-net emission being more essential and smart cities developing, ShiftCarbon appears to be more than ever a great opportunity to be involved in breakthrough technology.

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