Verde and Ergon Enter Exclusive North American Agreement to Commercialize Next Generation of Carbon Sequestering Road Materials

Core Viewpoint - Verde Resources Inc. has entered a 10-year licensing agreement with Ergon Asphalt & Emulsions to manufacture and distribute environmentally sustainable asphalt products across North America, alongside a $2 million strategic investment from Ergon [1][2][5]. Group 1: Agreement Details - The agreement formalizes a long-term strategic alliance to commercialize Verde's BioAsphalt™ materials in the U.S., Mexico, and Canada, with an option to extend for an additional 10 years [2]. - Under the agreement, Verde licenses its proprietary technologies to Ergon for manufacturing, marketing, and distribution, while Ergon gains rights to use Verde's trademarks and access technical services [4]. Group 2: Investment and Strategic Importance - Ergon's $2 million investment in Verde highlights confidence in Verde's long-term growth and solidifies the strategic nature of their alliance, expected to close in October 2025 [5]. - The collaboration aims to accelerate the adoption of low-carbon technologies in road construction, enhancing sustainability without compromising quality [7]. Group 3: Product Innovation and Market Potential - Verde's BioAsphalt™ is designed to be produced without heat or solvents, allowing year-round installation and significantly reducing greenhouse gas emissions [6]. - The global asphalt market is valued at over $175 billion, presenting a substantial opportunity for low-carbon solutions, particularly in North America [9]. Group 4: Environmental Impact and Carbon Credits - BioAsphalt™ is the first product to generate verified Carbon Removal Credits, positioning Verde as a pioneer in transforming asphalt into a climate-positive material [7]. - Verde will share 40% of its future Carbon Removal Credits with Ergon, linking commercial success to measurable environmental impact [8].