Verde Agritech Ltd (OTC:VNPKF)

Verde Agritech Plc (OTC:VNPKF) ($NPK.TO)  ($5.20; $288.3M market cap), an agricultural technology company that produces fertilizers announced Q3 2022 results:

• Sales of $27.2 million vs $10.6 million in the prior year 

• EPS of $0.12 vs EPS of $0.06 in the prior year

“The growth experienced throughout Q3 2022 reflects yet again the market’s growing demand for our Product. With Plant 2's commissioning, we expect Verde to continue its growth trajectory and improving bottom-line. It was a pity that we could not fulfill all the orders placed in our books, having had to turn down so many orders because of the operational constraints then present, yet I applaud our team for their efforts and dedication during this quarter,”

Verde Agritech Plc (OTC:VNPKF) (NPK.V)  ($3.45; $180.2M market cap), an agricultural technology company that produces fertilizers, announced it has concluded the repairs to the access road to Plant 2 that caused a temporary shut down. 

“Fortunately, the road issue did not damage human or environmental wellbeing and was surmounted quickly and definitely. Now we can put all our focus on achieving another year of record production and delivery,” commented Verde’s Founder, President & CEO, Cristiano Veloso.

In early September, the company provided updated guidance (yet still extremely strong) as it had run into unforeseen access road issues at its plant 2 site. 

Verde Agritech Plc (OTC:AMHPF) ($NPK.TO)  ($7.40; $374.6M market cap), an agricultural technology company that produces fertilizers, announced plans for redistribution of gains and corporate restructure plans. 

Return of capital to shareholders:

“Working alongside Verde’s management, the Committee determined that ongoing and expanding sales is expected to generate enough accumulated cash flow in the second half of 2022 to warrant returning gains to shareholders in the coming months.”

• By year end 2022, the Company expects to be able to return a minimum of C$10 million to shareholders while maintaining a minimum of C$30 million in cash and receivables.

• For 2023, Verde expects to continue returning gains to shareholders while maintaining a minimum of C$30M in cash and receivables, in addition to fully self-funding Plant 3, without need for equity or debt financing.

Re-Domiciliation:

“Verde is currently domiciled in the United Kingdom, a country with which it has no other business connection beyond its incorporation address and the relatively high costs of reporting and compliance under local regulations. Verde is also aiming at an increased access to a wider commodities market for its products. Furthermore, the United Kingdom bars companies from making any type of payment to shareholders while there are no distributable reserves available in the parent Company. The Re-domiciliation to Singapore will provide all the commercial advantages explained in the next section while also enabling the Verde group of companies (“Group”) to eventually execute its P4G through dividend, variable dividend, share buyback and other potential structures that will be further studied in the event that the Re-domiciliation is completed.”

There will be no impact to current shareholders:

“To implement the Re-domiciliation, Verde shareholders' shares will be exchanged for shares in a new Singaporean company (“New Verde”) on a one-for-one basis. Following the share exchange, New Verde will become the sole parent company of the Group. There will be no changes to the respective shareholdings of each Verde shareholder. Verde’s listing on the Toronto Stock Exchange will be replaced with New Verde’s listing on the Toronto Stock Exchange, with no impact on Verde shareholders.”