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TSE:NPK
Transformative Growth Through Innovation
“It takes the same effort to think small than to think big” Jorge Paulo Lemann.
“Costs are like fingernails. You have to cut them constantly” Carlos Alberto Sicupira
Disclaimer
If you are risk averse don’t buy our stock
Don’t rely on anything on this presentation
‘This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect to the Company’s strategy, the commercial production of Super
Greensand™, TK47 and Alpha (“Products”), design and building of a proprietary manufacturing facil ity, receipt of environmental permits, and the generation of cash flow. Forward-looking information
involves known and unknown risks, uncertainties and other factors which may cause actual resul ts, performance or achievements of the Company to di ffer material ly from the forward-looking
information. Material risk factors that could cause actual results to differ material ly from such forward-looking information include, but are not l imited to, the failure to obtain necessary regulatory
approvals, risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development
projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, demand for the
products in Brazil, exchange rate fluctuations and other risk factors set out in the Company’s most recently filed Annual Information Form under the heading “Risk Factors”. Currently, the Products is not
commercial ly produced or sold in Brazi l. As a consequence, there is no current market. Should commercial demand for the Products fail to develop, the Company’s business model may not be
appropriate. Accordingly, readers should not place undue reliance on such forward-looking information. Material factors or assumptions used to develop such forward-looking information include, but
are not limited to, the demand for the Products in Brazi l, the abili ty to secure necessary environmental and mining permits, the abili ty to secure financing, and other assumptions set out in the
Company’s current technical report. The Company does not currently intend to update forward-looking information in this news release except where required by law.
Total resources include all categories unless otherwise stated. The grades detai led in this presentation are conceptual in nature. There has been insufficient exploration to define a mineral reserve.
Should the company engage in further exploration, it is uncertain that it w ill resul t in the targets being delineated as a mineral reserve. Readers are cautioned not to rely solely on the summary of such
information contained in this presentation and are directed to complete information posted on Verde’s website (www.verdeagri tech.com) and fi led on SEDAR (www.sedar.com) and any future
amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein. Potential investors should conduct their own investigations as to the sui tabili ty of investing in
securi t ies of Verde AgriTech Plc ’ .
3
7 reasons to love Verde
4
1. Verde is in production.
2. Verde’s mineral resource starts at surface and is
over 3 billion tonnes.
3. Verde has a scalable project allowing minimal
diluting project finance.
4. Verde’s product Super Greensand™ is disruptive.
5. Verde only has 37 million shares outstanding.
6. Verde’s director Alysson Paolinelli is the father of
tropical agriculture.
7. Verde has significant developments for the coming
months.
• World Market size USD 54.6 Billion and¹ • Brazilian Market size USD9.6 Billion¹ • Verde’s products makes crops more resistant against pests and
diseases
• Agriculture accounts for 70% of water used in the world² • Verde’s products improve soil’s water holding capacity, enhances crop
water usage efficiency and makes crops more resistant against drought
• World Market size USD 150 billion³ • Brazilian Market size USD 4 billion4
• Verde’s products offers all essential macro and micro nutrients,
improves soil capacity to retain nutrients and increases nutrients availability
• The global sales of organic food and drink reached USD 80 billion in 2014.
US accounts for USD 40 billion • North American Cannabis market posted USD 6.7 billion in revenue in
20165
• Verde’s products are approved for organic agriculture
¹http://sindiveg.org.br/balanco-2015-setor-de-agroquimicos-confirma-queda-de-vendas/ ²http://www.oecd.org/agriculture/wateruseinagriculture.htm ³http://www.businesswire.com/news/home/20160322006385/en/Global-Fertilizers-Market-Worth-USD-152-Billion 4 http://abisolo.com.br/publicacoes / https://www.agrium.com/sites/default/files/2014-2015_factbook_2.pdf 5 http://www.businessinsider.com/arcview-north-america-marijuana-industry-revenue-2016-2017-1
One company, exposure to 4 major Investment Themes
5
Crop Protection Water
Organic and Cannabis Agriculture Crop Nutrition
Super Greensand™ development timeline
6
2008 to 2012 Verde surveys and drills an area of approximately 200.000 hectares conducting over 40 thousand
meters of drilling and undertaking thousands of chemical and mineralogical studies.
2013 A pioneer field trial conducted by Epamig that begun in 2010 proves high agronomic eficiency for direct
application rock increasing coffee productivity by 30%; increased phosphorus concentration in solution
by more than 10%; increased potassium concentration in the soil by 57% and increased micronutrients
concentration in the soil by 20%.
2014 Verde studies the mineralogical and chemical composition responsible for higher agronomic efficiency
and selects areas where this rock named siltito glauconitico can be found.
2015 Verde starts numerous field trials with leading agriculture corporations that collectively farm over 1
million hectares anualy using
2016 Verde annouces the commercial name for siltito glauconitico as Super Greensand.
2017 Super Greensand™ is approved in the United States to be used in organic production.
7
Scoop, Grind, Sell
50 years worth of Potash supplying Brazil’s entire current consumption
8
Measured, Indicated and Inferred Mineral Resource Estimate Grade Tonnage Report, , NI 43-101 compliant*
Tonnage (Mt)
Average grade
(%K2O)
• Total Measured 83 10.13
• Total Indicated 1,389 9.23
• Total Measured &
Indicated 1,472 9.28
• Total Inferred 1,850 8.60
*Mineral resources that are not mineral reserves do not have demonstrated economic viability *IDW2 Estimate (SRK Block Model - 50mE x 50mN x 10mRL) *OK Estimate (AMS Block Model - 50mE x 50mN x 5mRL) *Appropriate rounding has been applied to Table 1.8_2 Effective Date of the mineral resource estimate is: 31 March 2014 Source: NI 43-101 Pre-Feasibility Study (PFS), published in Mar/14 The PFS was prepared by AMEC plc, Andes Mining Services Ltd. and NCL Ingeniería y Construcción SpA
Scalable and bold business plan
9
Super Greensand
production target
Year Tonnes
2017 20,000
2018 300,000
2019 600,000
2020 1,800,000
2021 2,500,000
2022 3,000,000
2023 11,000,000
2024 18,000,000
2025
onwards 25,000,000
Super Greensand™ is multi purpose and multi nutrient.
10
Super Greensand™ Commodity (KCl) Year of Launch: 2017 1861
Nutrients: K, Mg, Mn, Fe, Si, Co and traces of 60 other minerals including all plant essential macro and micronutrients
K and Cl
Plant Nutrients Concentration 77% 60% Salinity: 0.17% 116% Ph in solution 9.5 (Basic) 4 (Acidic) Product’s losses in tropical soil: 0.3% 26% Water Holding Capacity 103% 0 Organic Agriculture: Approved Prohibited Impact on soil microorganisms: Fosters Kills Retains ammonia Yes No
Increases the soil's ability to retain water and other nutrients
Yes No
Provides Si, proven to increases plant resistance against pests, diseases and abiotic stress
Yes No
Market Size TBD (nutritional values and pricing to replace KCl Market)
9 Million Tonnes (94% imported and 5,4% domestically produced)
Average distance travelled to Brazil: 0 km (0 miles) 10,000km (6,200 miles)
Brazil Market Development
11
Crop Total hectares
cultivated in Brazil
# of potassium applications
required
Other benefits
Grains (Safra/Safrinha: 2 crops per year in
Brazil, usually Soybeans followed by Corn)
58.5 million¹ Super Greensand™ : One
KCl: Up to Three
Allows for earlier fertilizer
application
Coffee
2.21 million² Super Greensand™: One
KCl: Up to Four
Coffee beans grown with KCl have
266% more Chlorine than coffee
beans grown without KCl.
Sugar Cane
8,9 million³
Super Greensand™ : One
KCl: Up to Two
Chlorine from KCl causes corrosion
and pipe holes in industrial plants
Citrus 0.9 million4 Super Greensand™ : One
KCl: Up to Three
Super Greensand™ has no Cl.
Chlorine from KCl increases fruit
acidity
Tobacco & Other Chlorine Sensitive Crops (e.g.
pineapple, banana, potato, etc.)
0.3 million5 Super Greensand™: One
SOP or NOP: Up to Three
Significantly reduces costs as Cl
free fertilizers are very fertilizers.
¹http://www.conab.gov.br/OlalaCMS/uploads/arquivos/16_01_12_09_00_46_boletim_graos_janeiro_2016.pdf
²https://www.embrapa.br/busca-de-noticias/-/noticia/12830496/producao-brasileira-de-cafe-em-2016-esta-estimada-em-4967-milhoes-de-sacas
³http://www.conab.gov.br/OlalaCMS/uploads/arquivos/15_12_17_09_03_29_boletim_cana_portugues_-_3o_lev_-_15-16.pdf 4http://revistagloborural.globo.com/Noticias/Agricultura/Laranja/noticia/2015/05/pes-aponta-plantio-de-935-mil-hectares-de-laranja-em-2014.html 5http://sinditabaco.com.br/sobre-o-setor/dimensoes-do-setor/
Fast growing agricultural innovations thrive on Super Greensand™
12
Agricultural system technique How Super Greensand™ benefits the system
• Fertilizing system: A soil fertility
management strategy, where the focus is
on maintaining the best soil conditions to
provide nutrients to the crops along the
production process rather than the
individual focused crop fertilization
• The nutrients provided by Super Greensand™ are not lost by leaching, being
available to the subsequent crops
• Allows for a single potassium application
• Composting: A biological process of
decomposition and recycling of organic
matter contained in remains of animal or
vegetable origin. Millions of tonnes of the
composted material is used as fertilizer in
agriculture
• Improves composting by retaining ammonia and nutrients and promoting mineral
supplementation to microorganisms
• Maximizes the effects of organic matter
Focused US Market Development
1. Organics
i. Retail market for organic products is valued at more than $39 billion in the United States and over $75 billion worldwide¹
13
¹https://www.usda.gov/media/press-releases/2016/04/04/usda-reports-record-growth-us-organic-producers https://www.agcensus.usda.gov/Publications/2012/Online_Resources/Highlights/Organics/2014_Organic_Survey_Highlights.pdf
Focused US Market Development
2. Cannabis
i. A new industry, potential product of choice
ii. Distribution opportunity with North America leading distributor
iii. US and Canada spent over $53 billion on cannabis in 2016¹
14
¹ http://www.businessinsider.com/us-canada-marijuana-spending-legal-illicit-2017-1 Map: http://www.governing.com/gov-data/state-marijuana-laws-map-medical-recreational.html
First shipment to the US, May 2017
Focused US Market Development
3. High Value salinity sensitive crops¹
15
¹ http://ucce.ucdavis.edu/files/repositoryfiles/ca3810p20-72365.pdf http://www.agmrc.org/commodities-products/ http://usda.mannlib.cornell.edu/usda/nass/CitrFrui//2010s/2015/CitrFrui-09-17-2015.pdf http://ucanr.edu/sites/Salinity/Salinity_Management/Effect_of_soil_salinity_on_crop_growth/Crop_salinity_tolerance_and_yield_function/ Groundwater Salinity Impacting California Almonds http://www.growingproduce.com/nuts/groundwater-salinity-impacting-california-almonds/
Almond Grape Strawberry
Value of American crop (USD billion) 6.40 5.76 2.90
Acres cultivated in US 1,110,000 1,049,600 59,895
Maximum soil salinity without yield loss (threshold) 1.5 1.5 1.0
% Decrease in yield at soil salinities above the
threshold
19 9.6 33
0 20 40 60 80 100 120 140
Potassium Chloride
Sulphate of Potash
Nitrate of Potash
Super Greensand
Salinity Index
Verde AgriTech
Directors
Dr. Alysson Paolinelli: Dr. Paol inelli holds a degree in Agronomy from the
Federal Universi ty of Lavras (UFLA). He has held positions such as the
Brazilian Minister of Agricul ture, the President of the National
Confederation of Agricul ture, and the Secretary of Agricul ture for Minas
Gerais State. As the Minister of Agriculture, Dr. Paolinell i establ ished the
Brazilian Agricultural Research Corporation (EMBRAPA), the world’s
leading tropical agricul ture research insti tution.
Renato Gomes: Mr. Gomes holds an LL.B. from the Federal University of
Minas Gerais (UFMG), an LL.M. from the London School of Economics, UK,
and a PhD from Georgetown Universi ty, USA. Mr. Gomes is currently
President and CEO of Atlantica Mining, which operate i ron ore projects in
Brazi l .
Getúlio Lamartine: Getulio Lamartine holds a degree in Economics from
the Federal University of Minas Gerais (UFMG). He is a senior economist
with over 40 years of government and consulting experience in the
Brazilian resource, electrical and power generation sectors, having served
as Deputy Minister of the Environment (Brazi l ) in 1994.
Paulo Sergio Ribeiro Machado: Mr. Machado holds a degrees in Mining
Engineering and Geology from the Federal University of Minas Gerais
(UFMG) and has spent his career developing and operating large mining
projects. He has also acted a member of the Board of Directors of CEMIG,
one of the largest and most important electric energy uti l i t ies in Brazi l .
16
Dr. Alysson Paolinelli – Director
Executive Team
Cristiano Veloso | Founder, President & CEO: Cristiano Veloso holds a
Business Management degree from the Management Training Technical
School of SEBRAE, an LLB from the Federal University of Minas Gerais,
and a Masters in International Business Law from the University of East
Angl ia, UK. Mr. Veloso founded Verde in 2005 and has since led the
Company’s development.
Tim Slater | Chief Financial Officer: Tim Slater is the Managing Director of
Harmer Slater Chartered Accountants in the UK, and has been involved in
the preparation of all of the Company’s f inancial statements and audit
materials since 2007. Mr. Slater acts as Finance Director for a range of
companies in the UK.
Rodrigo MacLeod | Sales : Master's Degree in Plant Protection from
Universidade Estadual Paulista (UNESP), graduated in Agronomy from
Universidade Federal de Lavras (UFLA). In the last year he has focused
his work on the research of new agro-technological products focused on
plant protection and nutrit ion and has already conducted thousands of
experiments in Brazil wi th the largest agricultural producers and main
research centers, such as EMBRAPA.
Débora Moreira | Geologist: Currently a PhD candidate in Economic and
Appl ied Geology by IGC-UFMG. Master in Economic and Appl ied Geology
by the postgraduate program of IGC / UFMG and graduated in Geology
from the Insti tute of Geosciences of UFMG. Débora works in the area of
mining projects, with emphasis on exploration of nonmetal lic deposits and
industrial m inerals.
Larissa Albuquerque | Marketing : Postgraduate in Marketing from
IBMEC-MG, Larissa partic ipates on the creation and execution of strategic
and market planning, content production, competition analysis and
monitoring, product development, customer relationship management and
brand image management.
Edson Rodrigues | Mining expert: Mining expert by CEFET-GO. He has
nine years of experience on the mining segment, performing functions
such as preparation and description of samples, monitoring ore
processing, geological mapping, coordination and execution of f ieldwork.
The r ight Braz i l ian team to resolve a g loba l prob lem
We are proud of our share structure
17
$2.3M $16M
$14.5M $28.7M
0
2
4
6
8
10
12
14
16
Pre-IPO Nov-07 Jan-11 Mar-12
# o
f Sh
are
s
Mill
ion
s
Equity Issuances (2006-Present)
• Tight: 41,221,429 shares fully diluted and 37,617,430 outstanding
• Cristiano Veloso, founder and CEO, owns 2.8M shares, has only bought shares since founding the company in 2005 and
isn’t paid a cash salary.
• Cash Position (Mar/17): $1.3M
• Current Monthly Burn rate: $67k
18
Milestones 2017 2018
Q2 Q3 Q4 Q1 Q2 Q3 Q4
Mining Permit
Mining Contractor
Industrialization Contractor
Mine Start-up
PFS for phased 25Mt Super Greensand™ production start up
US Cannabis and Organic Agriculture Distributor announcement
100% of Year 1 production sold out
PFS completion
300k tons per annum of Super Greensand™ start up
Milestones
Why Verde, Why Now
19
Transformative Growth Through Innovation
7 reasons to invest: One company, 4 Investment Themes exposure
Potential Exponential growth Big advances beckon
1. ZERO Capex production in 2017 2. Huge mineral resource 3. Scalable project 4. Super Greensand™ is disruptive 5. Few shares outstanding 6. Dr Alysson Paolinelli is a director 7. Significant developments for the coming months
1. Crop Protection 2. Water 3. Crop Nutrition 4. Organic and cannabis Agriculture
• Verde has partnered with the world leaders in
agriculture. Together, these companies cultivate more than 2,800,000 hectares
• Year 1 Production sold out • US distributor announcement • PFS for 25Mtpa
Av. do Contorno, 6.594 - 7º andar - Lourdes
Belo Horizonte - MG
(31)3245-0205
Appendix
Feeding the world
• W orld population is growing exponentially and Brazil is one of the globe’s largest agricultural producers
22
http://www.bbc.co.uk/schools/gcsebitesize/geography/population/population_change_structure_rev1.shtml
Brazil’s main agribusiness value chains
Source: USDA (2013); PwC Agribusiness research
World’s largest importer and second largest consumer of potash
23
• In 2014, Brazil imported 8.4M tons of KCl, an increase from 2013 of 8.1M tons.
• Vale operates the only potash mine in the country, which meets only 5% of the country’s needs.
• Potash consumption in Brazil has grown at a rate more than double that of the world and is expected to increase by 3Mt between
from 2014-2025.
Brazil Potash Deliveries and Consumption Potash Consumption Growth
3,91%
1,26%
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
Brazil 10 year CAGR World 10 year CAGR
Source: Fertecon Potash Outlook Report (Feb/2014); ANDA (www.anda.org.br)
Source: Scotiabank
Super Greensand™ nutrients
24
Nutrient % in Super
Greensand™ Main sources used today
N 0.14 Urea
P2O5 0.18 Mono-Ammonium Phosphate, Single Super Phosphate
K2O 10 Potassium Chloride
S 0.03 Gypsum, Elemental Sulfur
Ca 0.34 Limestone
Mg 1.74
SiO2 58.97 Calcium Silicate
Fe 5.33 Iron Sulfate
Mn 0.05 Manganese Sulfate
Cl 0.06 Potassium Chloride
Zn 0.01 Zinc Sulfate
B 0.01 Boric Acid
Cu 0.002 Copper Sulfate
Co 0.0004 Cobalt Sulfate
Mo 0.00003 Sodium Molybdate
Agricultural Partnerships
25
# of partners Crop Hectares
14 Sugarcane 1,770,000
9 Grains 1,067,525
3 Tobacco 363,000
2 Eucalyptus 233,000
5 Fruits 73,000
14 Coffee 37,084
4 Vegetables 4,920
51 PARTNERS 2,880,198
Other Products: Alpha Trial Results
26
Crop Best results
Soybeans 12% more productivity with only 50% of the defensive dose used in standard management, greener and leafy plants
Coffee 24% more productivity, reduction in the application of pesticides, lower incidence of Phoma and Cercosporiose, greener
and leafy plants
Carrot 6% more yield and final product with more quality
Potato 5.53% more productivity and final product with more quality
Cotton Reduction in the application of pesticides and increased of productivity in 12 pounds
Guava Faster reproductive cycle, increased fruit quality (peel more resistant, weight, Fruit brix)
Alpha is a new product currently under development and testing by Verde and its agricultural partners.
Alpha is a natural product that provides more productive yields, improves
crops’ quality and increases profitability.
Other Products: TK47
• TK47 is a multi-function innovative product that, in a single grain, combines benefits for plant nutrition, plant protection, water use eff iciency, soil
improvement and increased sustainability.
27
Plant nutrition: Plant protection:
i. offers a high concentration of nutrients in a single homogenous grain:
Potassium, Calcium, Magnesium and Silicon;
ii. provides nutrients synchronously with the needs of the plant;
iii. contains zero chlorine and no salinity;
iv. offers traces of over 40 minerals relevant for plant nutrition, such as:
Sulphur, Phosphate, Manganese, Zinc, Copper and Cobalt
i. activates the plants defence mechanisms;
ii. increases natural plant resistance against diseases and pests;
iii. strengthens the plants resistance against abiotic stress: drought, cold, heat,
light, salt and metals toxicity.
Water use efficiency: Soil improvement:
i. improves the plants water use efficiency;
ii. reduces evapotranspiration, loss of water from the soil both by
evaporation and by transpiration from the plants growing thereon;
iii. increases the soils water retention capacity.
i. significantly increases the availability of phosphate in the soil;
ii. raises the soils pH level;
iii. increases the soils capacity to retain nutrients
Sustainable agriculture
:
i. its nutrients are not lost by leaching, avoiding water table pollution;
ii. is certificated for use in organic agriculture;
iii. reduces the need for multiple product applications thus optimizing plant nutrient management systems;
iv. reduces the need for pesticides, fungicides and other chemicals;
v. reduces CO2 emissions by potentially eliminating the use of limestone.
Other Products: TK47 Trial Results
28
Crop Best results
• Sugarcane • More productive and final product with more quality than the sugarcane grown with KCl
• Improved soil quality: increased pH and the concentration of the nutrients K, Ca, Mg, Si
• Coffee • TK47 plot achieved a similar productivity to the KCl plot using only 1/3 of the potassium dose
• Improved beverage quality, raising the category to special coffee
• Increased total phosphorus concentration in the soil by 90% and phosphorus in solution by 20%
• Improved soil quality: increased pH and CEC, increased nutrient concentration K, Mg, Ca
• Carrot • TK47 plot increased productivity by 4.24% using half of the potassium dose of the KCl plot
• TK47 plot increased productivity by 8.39% using the same dose of potassium of the KCl plot
• Increased carrot quality
• Improved soil quality: increased nutrient concentration K, P, Ca, Mg
• Potato • Increased potato quality by 3.86%
• Increased K concentration in the soil
Future Products Currently Under Development
29
Camel Lawn: organic product for lawn care
BioK+: innovative line of biotech potassium fertilizers
Cat Litter: organic product for pet care and gardening
KPFertil: granulated potassium phosphate fertilizer