DevvStream to Acquire 50% Equity Stake in Carbon Sequestration Hub Facility

VANCOUVER, BC, October 15, 2024 – DevvStream Holdings Inc. (“DevvStream” or the “Company”) (CBOE: DESG) (OTCQB: DSTRF) (FSE: CQ0), a leading carbon credit project co-development and generation firm specializing in technology-based solutions, and Monroe Sequestration Partners LLC (“MSP”), a subsidiary of Crestmont Investments LLC (“Crestmont”), today announced the signing of an MOU whereby DevvStream will acquire a 50% equity stake in MSP and its carbon sequestration operations.

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In exchange for the 50% equity stake in the facility, DevvStream will issue 2 million newly authorized shares of common stock for the public company (“NewCo”) resulting from its proposed business combination with Focus Impact (the "Business Combination") to MSP.

Upon closing of the Business Combination, NewCo is expected to be named DevvStream Corp and begin trading on Nasdaq under the ticker symbol "DEVS.”

Funded and managed by Crestmont, MSP is working within the geographic area and geologic formations capable of carbon storage for a legacy oil and gas field—covering 425 square miles across 3 parishes in northern Louisiana—to develop one of the largest carbon sequestration reservoirs in the United States, with an estimated total storage capacity of 260 MMT of CO2, and capable of capturing a significant portion of the 30 million metric tons of CO2 emitted from local sources annually.

Revenues from the project are expected to be generated within a two-year timeframe via carbon sequestration federal tax credits—typically referred to as “45Q” credits—which currently sell for $85 per tonne of CO2 stored. Project revenues are also anticipated to be derived from the sale of voluntary carbon offset credits, as well as storage fees from accepted CO2 to be sequestered in the converted reservoir.

Other potential revenues are projected to originate from timberland sequestration, stream bed remediation, and wetlands restoration.

In production since the early 1900s, the MSP field has produced several trillion cubic feet of gas; however, MSP has entered into an exclusive agreement with the field’s largest owner and operator to convert the field into a carbon sequestration reservoir.

To help ensure successful operations, MSP receives support from an established board of advisors that includes members of the Louisiana Oil and Gas Association (“LOGA”) and its Carbon Capture and Utilization Storage committee, which includes Louisiana’s leading energy law firms, carbon project developers, and large independent landowners, as well as veteran financial and industry operators and engineers with extensive experience in carbon sequestration.

“The MSP project is a prime example of doing well while doing good,” said SUNNY TRINH, CEO OF DEVVSTREAM. “Not only does the project allow DevvStream to contribute significantly to global carbon storage efforts, which promote the stabilization of atmospheric CO2 levels and help mitigate the impacts of climate change, but it also provides sustained access to diverse sources of revenue, including high-demand 45Q tax credits.

As DevvStream continues to pursue strategic growth opportunities, industry consolidation, and the diversification of its revenue stream, we look forward to working alongside Crestmont to operationalize and monetize the MSP sequestration hub.”

“Crestmont is committed to working with our friends at LOGA and within the energy transition community to promote Louisiana as a leader in carbon capture and sequestration,” said DAVID BEACH, PRINCIPAL AT CRESTMONT INVESTMENTS. “After 15 years of research and exploration in legacy oil and gas fields in the gulf south, Crestmont is exceptionally proud to launch Monroe Sequestration Partners to bring this vision to life. Independent engineering consultants have stated that the Monroe project has the potential to become one of the largest carbon credit generation and sequestration opportunities in the nation. The addition of DevvStream further strengthens the Monroe project by allowing us to generate high-quality environmental assets with integrity, credibility, and trustworthiness.”

“Louisiana is in the enviable position to lead the nation and the world in carbon sequestration projects,” said BRYAN HANKS, CURRENT LOGA BOARD MEMBER. “The state represents an ideal location due to its natural geologic formations, pipeline infrastructure, meaningful access to carbon emissions sources from multiple plant and factory corridors, and a workforce rich in experience with surface and downhole operations – combinations unmatched anywhere.

Monroe Sequestration Partners has assembled a tremendous team to maximize the unique opportunities our region provides, and the addition of DevvStream, with their expertise across all classes of environmental assets, helps ensure that project revenues will be generated with professionalism and transparency.”

DevvStream expects the MSP agreement to close in conjunction with the Business Combination and Nasdaq listing.

About DevvStream

Founded in 2021, DevvStream is a leading authority in the use of technology in carbon project development. The Company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health. With a pipeline of over 140 technology-based projects worldwide, DevvStream makes it simple for corporations and governments to address their net-zero goals while generating premium carbon credits in the process. DevvStream takes a programmatic approach to evaluating project opportunities and co-develops projects spanning energy-efficient buildings, facilities and homes, industrial facilities, LED systems, EV charging stations, and technologies to seal oil wells. The Company's end-to-end proprietary solution removes the risk and complexity from every step, allowing organizations to move from project ideation to credit monetization with ease. The result is a multi-year stream of carbon credit revenue that transforms sustainability into a financial investment. In addition, for organizations that need help to offset their most difficult-to-reduce emissions, we also provide premium carbon credits for purchase.

On September 13, 2023, DevvStream and Focus Impact Acquisition Corp (NASDAQ: FIAC) ("Focus Impact") announced that they have entered into a definitive business combination agreement for a business combination that would result in the combined company (DevvStream) to be listed on Nasdaq under the ticker symbol "DEVS." On December 11, 2023, DevvStream announced the filing of a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which contains a preliminary proxy statement/prospectus in connection with the Business Combination. Upon closing, the Business Combination is expected to result in DevvStream being the first publicly traded carbon credit company on a major U.S. stock exchange.

About Focus Impact Acquisition Corp.

Focus Impact Acquisition Corp. (Focus Impact) is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.

About Crestmont Investments

Crestmont Investments specializes in structuring and arranging investments in companies and projects dedicated to fostering a cleaner, safer, and healthier world. With nearly 20 years of experience, our management team collaborates closely with family offices to facilitate direct, private offerings. We partner with exceptional management teams to drive impactful investments that contribute positively to global sustainability and societal well-being.

About Monroe Sequestration Partners

Monroe Sequestration Partners LLC is a Delaware limited liability company formed by Crestmont Investments that holds agreements and intellectual property related to the conversion of a large, legacy gas field into a carbon sequestration reservoir and hub. Managed by members of the Crestmont executive team on an interim basis, Monroe Sequestration Partners is supported by a board of advisors that includes members of the Louisiana Oil and Gas Association, as well as veteran financial and industry operators and engineers.