Core Insights - Verde AgriTech Ltd. has signed an exclusive agreement with UNDO Carbon Ltd. to explore a commercial partnership focused on creating and selling carbon removal credits from Enhanced Rock Weathering activities in Brazil, which could potentially remove hundreds of thousands of tonnes of CO₂ from the atmosphere [1][2] Partnership Overview - The collaboration aims to leverage Verde's mineral resources and operational capacity in Brazil alongside UNDO's expertise in Enhanced Rock Weathering measurement and technology, creating a scalable model for carbon removal [2][3] - This agreement marks Verde's entry into the carbon credit market, establishing a framework to monetize its Enhanced Rock Weathering activities [2][6] UNDO Carbon's Achievements - UNDO has spread over 313,800 tonnes of silicate rock across 398 farms, enriching 54,400 acres of agricultural land and set to permanently remove approximately 69,000 tonnes of CO₂ [4] - The company was recognized as one of the winners of the $100 million XPRIZE Carbon Removal competition, highlighting its innovative approach to carbon dioxide removal [3] Benefits of the Partnership - For Verde, the partnership provides access to UNDO's technology for measurement, reporting, and verification of carbon removal, as well as established relationships with carbon removal buyers [5][6] - For UNDO, the agreement secures a reliable source of high-quality Enhanced Rock Weathering feedstock from Verde's operations in Brazil [2][5] Warrant Grant Details - Verde will grant UNDO up to 1.7 million common share purchase warrants, with specific conditions regarding exercise price and vesting based on cash consideration received under Qualified Offtakes [7][9][10] - The warrants are structured to align equity participation with verified carbon credit revenue milestones, ensuring value alignment with Verde shareholders [18] Enhanced Rock Weathering Process - Enhanced Rock Weathering involves spreading crushed silicate rock on agricultural land to accelerate natural weathering processes, which can potentially remove up to 4 billion tonnes of CO₂ per year if scaled effectively [19]

Core Insights - Verde AgriTech Ltd reported its Q3 2025 financial results, highlighting a challenging operating environment due to the Great Brazilian Agriculture Crisis, but noted sequential improvements in performance [2][6][30] Financial Performance - EBITDA before non-cash events was $0.1 million in Q3 2025, marking the first positive EBITDA since Q2 2023, compared to a loss of $0.03 million in Q3 2024 [6][25] - Sales volume decreased by 16% to 85,136 tons in Q3 2025 compared to Q3 2024, while revenue fell by 18% to $5.9 million [6][23] - Gross margin excluding freight remained stable at 60%, consistent with Q3 2024 [6] - Net loss narrowed to $2.1 million in Q3 2025 from a loss of $2.3 million in Q3 2024 [6][25] - Cash position improved slightly to $3.6 million from $3.4 million year-over-year, with short-term receivables at $7.9 million [6][29] Market Conditions - The agricultural sector continues to face pressures from geopolitical tensions, extreme climate risks, and high input costs, but there are signs of recovery as Brazilian farmers begin the 2025/26 planting season [8][9] - The Companhia Nacional de Abastecimento (Conab) reported expectations for high soybean, corn, and grain production, indicating resilience in agricultural output [8] - The global potash market is projected to reach $34.8 billion by 2033, with a CAGR of 2.66%, driven by population growth and food security [8][14] Sustainability Initiatives - Verde's products have the potential to capture up to 10,214 tons of CO2 through Enhanced Rock Weathering, with a net estimated capture of 7,106 tons [6][47] - The company has prevented the application of 6,740 tons of chloride in Q3 2025 by offering a chloride-free alternative to potassium chloride fertilizers [6][48] Rare Earths Exploration - Verde announced the discovery of a continuous, clay-hosted rare earth element mineralized zone in Minas Gerais, Brazil, covering approximately 5,500 hectares [6][7] - A three-rig drilling program has commenced to define high-quality magnet rare earth resources, with key project milestones outlined for 2026 [7][31] Economic Outlook - Brazil's economy is projected to grow by around 0.3% in Q3 2025, with a full-year growth forecast of 2.0% by the Brazilian Central Bank [15] - The SELIC interest rate remains high at 15%, but potential cuts may occur if inflation continues to ease, with forecasts suggesting a decline to 12.25% in 2026 [15][18]