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CALGARY, Alberta - DevvStream Corp. (NASDAQ: DEVS), a carbon management firm with a current market capitalization of $5.81 million, has entered into a Memorandum of Understanding with UAE-based Fayafi Investment Holding to create a joint venture aimed at funding decarbonization and climate infrastructure projects globally. According to InvestingPro data, the company’s stock has experienced significant volatility, currently trading near its 52-week low of $0.18. The venture, named Fayafi x DevvStream Green Ventures, is expected to launch with an initial funding commitment of $100 million, potentially increasing based on project performance.
The collaboration combines DevvStream’s expertise in environmental project development with Fayafi’s financial resources and ESG investment strategy. The joint venture is scheduled to finalize firm agreements in Q2 2025 and commence project deployments in the second half of the year.
Under the proposed structure, Fayafi would hold an 80% stake in the joint venture, with DevvStream owning the remaining 20%. The partnership is designed to be capital-light, allowing DevvStream to leverage its project management and carbon monetization capabilities while minimizing initial investment. This structure appears crucial given the company’s current financial position - InvestingPro analysis shows a weak financial health score of 0.52 and a concerning current ratio of 0.05, indicating potential liquidity challenges.
DevvStream’s Chairman, Carl Stanton, highlighted the venture’s goal to scale climate and energy transition investments. Fayafi’s Chief ESG Investment Officer, Bobby Campbell, expressed commitment to the partnership’s potential in advancing climate finance.
This strategic move is set to expand DevvStream’s global reach and enhance its ability to generate recurring revenue streams from environmental assets. The MoU grants DevvStream exclusivity during the feasibility phase and a first right of refusal on carbon-related opportunities.
DevvStream, founded in 2021, develops and invests in environmental assets and offers carbon management solutions, though InvestingPro data reveals the company has faced significant challenges with a negative EBITDA of $11.33 million and a year-to-date stock price decline of 74.34%. Fayafi Investment Holding, with a diverse portfolio including sustainability and AI, is known for its innovative investment approach and ESG leadership. InvestingPro subscribers have access to 11 additional key insights about DevvStream’s financial health and market performance.
The news release includes forward-looking statements subject to risks and uncertainties, and there is no assurance that the anticipated benefits of the joint venture will be realized. The statements are based on current expectations and are not guarantees of future performance. This article is based on a press release statement.
In other recent news, DevvStream Corp. has joined the Singapore Carbon Market Alliance, a significant step for the company as it engages in high-integrity carbon credit trading under the Paris Agreement’s Article 6. This development allows DevvStream to connect with potential buyers of these carbon credits, which are expected to command a premium in the market. In addition, DevvStream executives, including Chairman Carl Stanton and Director Wray Thorn, have invested $218,000 in the company’s 5.30% Secured Convertible Note, maturing in November 2026, to support expansion into energy transition markets. The company has also expanded its e-commerce carbon offset tool, D-PIVOT, through strategic partnerships with Zing and Minimus Fulfillment, targeting Shopify storefronts to promote sustainability in online shopping.
Furthermore, DevvStream faces a potential delisting from The Nasdaq Stock Market due to its share price falling below the required minimum for 30 consecutive trading days. The company has until August 13, 2025, to rectify this situation, with a possible extension of another 180 days if needed. These developments highlight DevvStream’s ongoing efforts to align sustainability with profitability while navigating challenges in maintaining its Nasdaq listing.
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