Verde Announces Man of War Rare Earths Project Spin-Off
nov 20, 2024
Singapore. Verde AgriTech Ltd (TSX: “NPK”) (OTCQX: “VNPKF”) (“Verde” or the “Company”) is pleased to announce the incorporation of Oby Rare Earths Pty. Ltd. (“Oby”) in Australia, which will independently advance the Man of War Rare Earths Project (“MoW”), subject to shareholder approval.
The MoW spin-off would allow Verde to concentrate exclusively on its core business: producing and commercializing low-carbon specialty fertilizers. The Company will hold a Special Meeting of Shareholders on December 20, 2024, to vote on the approval of the Oby spin-off and the distribution of its shares to Verde’s shareholders.
MoW’s 3,640 meters of diamond core drilling have shown impressive results for magnetic and heavy rare earths in both grade and thickness. For detailed results, please refer to press releases from October 07 [1], October 29 [2], and November 18 [3], 2024.
The Company has commissioned an independent resource calculation, expected to be completed by the end of 2024.
In light of the project’s potential and the substantial investments required for its development, the Board of Directors has decided that it should be pursued by an entity independent of the Company. As a result, Verde established Oby to independently focus on developing the MoW. The word Oby comes from Tupi Guarani. A native Brazilian Indian language and means ‘green’. Both Praseodymium and Neodymium, found in significant quantities at MoW, are bright green when isolated.
The Company decided to incorporate Oby in Australia in order to facilitate a potential IPO on the Australian Stock Exchange (ASX). The ASX has been the most active stock exchange in the rare earths and mining sector over the last few years. [4] Nevertheless, Oby is evaluating other potential financing alternatives in both private and public markets.
Reduction of Share CapitalVerde proposes to distribute its interest in Oby to its shareholders through a capital reduction, proportionate to each shareholder’s existing stake. Under this arrangement, each shareholder will receive one share in Oby for every ordinary share they hold in the Company as of a record date and time to be determined by the Board and disclosed via a press release. No payment and no other form of consideration will be required from the shareholders for the proposed distribution.
For more detailed information, please see the Management Information Circular at: investor.verde.ag
Appointment of new auditorsIn order to save costs without compromising work quality Verde decided to change auditors from Ernst & Young LLP (“EY”) to RSM SG Assurance LLP (“RSM”) as the new independent auditor for the Company.
In the Special Meeting, the change of auditors will also be voted on.
Requested by Verde, EY resigned as the Company’s auditors on 8th of October, 2024. On behalf of the directors the Company would like to thank EY for the work done and look forward to welcoming RSM as our new auditors.
This change is being pursued to align with the Company’s evolving business needs and to ensure that we continue to receive high-quality audit services while also optimizing costs. RSM, with its extensive expertise in the agricultural and natural resource sectors, is well-positioned to provide the necessary auditing services.
Special Meeting of ShareholdersThe Company will host a Special Meeting of Shareholders on Friday, December 20, 2024, at 09:00 a.m. Eastern Time. Subscribe using the link below to receive the conference details by email.
| Date: | Friday, December 20, 2024 | | Time: | 09:00 am Eastern Time | | Subscription link: | https://bit.ly/Extraordinary-General-Meeting | | Information Circular: | https://investor.verde.ag/wp-content/uploads/2024/11/VAL-2024-Extraordinary-General-Meeting-MIC-Nov-11-DMS-cmts_13-Nov-2024.pdf |
The questions must be submitted in advance through the following link up to 48 hours before the conference call: bit.ly
investor.verde.ag |
