Boreal Carbon Corp., a Canadian private company raises $4 million seed round from strategic investors.
Key backers are Canadian billionaire David Thomson’s private company (Osmington), Senvest Capital Inc (owner of the Toronto Star), and NordStar Capital.
The chairman of the company is Paul Rivett, former President of $14 Billion market cap Fairfax Financial. Mr. Rivett is also a co-founder and Chairman of NordStar Capital, one of their seed investors.
The $4 million investment will allow Boreal to fill important company positions such as chief forester, carbon-credit experts, and investment analysts, as well as source possible acquisition prospects.
Boreal envisions becoming a leading carbon credit developer through the acquisition and management of forestry projects in North America. There are positioning themselves as a pure-play forest carbon credit developer.
Brendon Abrams, Boreal CEO, said “As the world moves towards a net-zero GHG economy, carbon credits will play an integral role to facilitate governments and corporations in meeting their GHG emissions targets”.
“Combined with the growing influence of ESG investing, an increase in the cost to pollute, and the prospect for significant regulatory changes in Canada and the United States, we believe the value of high-quality verifiable carbon credits will increase over the coming years.”
“These projects are quite capital intensive because we’re essentially buying land where forestry projects operate,” Abrams went on to say. “Each project will be in the multiple of millions of dollars.”
This will likely lead to a second round of financing early next year, depending on their acquisition prospects.
The global market for carbon credits is expected to grow exponentially with some estimates reaching $50 billion by the end of the decade.
