12:09 PM EDT, 04/15/2024 (MT Newswires) -- Hempalta Corp. (HEMP.V) said Monday it exercised its option to purchase a controlling stake in Hemp Carbon Standard.

In connection with the exercise of the option, the company has entered into a definitive share purchase agreement with Hemp Carbon Standard, and Climafi Ltd.

Under the agreement, Hempalta will acquire 50.1% of the outstanding shares of Hemp Carbon Standard from Climafi for a cash payment of $40,000 to Climafi; and $2 million in common shares of Hempalta, which are issuable at $0.16 apiece, for a total issuance of 12.5 million Hempalta shares to the shareholders of Climafi.

Hemp Carbon "carries on a business of providing an end-to-end solution to obtain high integrity carbon credits from industrial hemp farming and ancillary activities relating thereto", the company noted.

The deal is expected to close by April 30.

Hempalta shares were last seen unchanged at C$0.20 on the TSX Venture Exchange.