PwC Legal advised eAgronom on an extraordinary spin-off transaction

July 2022

We advised on a spin-off transaction, unique in Estonia and on a global scale, as a result of which the blockchain-based enterprise Solid World DAO grew out of the eAgronom startup, which is developing a carbon trading program.

The transaction was exceptional on a global level especially due to its complexity, as it included both the advance purchase of Verified Carbon Units and the pledging of crypto tokens (Solid Tokens).

Stenver Jerkku, eAgronom's co-founder and the leader of Solid World DAO was pleased: "From the very start PwC Legal spearheaded by Priit Lätt has helped us navigate the legally challenging blockchain waters in Estonia and abroad. They carried us through this transaction with speed and confidence. We applaud the tempo and quality of their work!"

The PwC Legal advising team was led by Priit Lätt, Partner, Head of IP/IT, supported by Kirill Lezeiko, Head of Financial Transactions and Capital Markets, Indrek Ergma, Partner, Head of Corporate and Employment, and Taivo Liivak, a lawyer of IT law.

eAgronom helps farmers become greener and create certified high-quality carbon credits, which have a global demand that is outstripping supply. Companies can voluntarily use carbon credits to reduce their carbon footprint or bring it to zero and thus help stop climate change. The use of credits is particularly important for companies that have set themselves the target of meeting ESG goals. eAgronom is the first carbon credit program in Central and Eastern Europe that is included in the register of the world's largest certifier Verra.

eAgronom currently operates the fastest growing certified carbon credit program for farmers in the world. The course of rapid growth also saw the creation of the blockchain-based initiative Solid World DAO in order to facilitate investments in carbon credits. The decision to separate the two business lines came after consulting the world's leading web3 advisors and funds. A spin-off further increases the potential and focus of both ventures and avoids conflicts of interest.

Solid World DAO aims to simplify the trading of carbon credits and make the market safer and more attractive through a decentralised autonomous organisation. Solid World DAO is building the world's first public good infrastructure for pre-purchased but not yet certified carbon credits. This will increase investment in carbon credit projects and in turn helps to stop climate change.

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