Verde Agritech closes $4.5-million private placement

Executive Summary

• Verde Agritech Ltd. has closed a brokered private placement raising aggregate gross proceeds of $4.5 million.
• The offering consisted of 3.75 million units priced at $1.20 per unit, with the majority subscribed by a leading resources institutional investor.
• Net proceeds are designated to accelerate work at the Minas Americas Global Alliance rare earth project in Brazil, including drilling and technical studies, alongside working capital needs.

Key Details

• Gross Proceeds: $4.5 million.
• Units Issued: 3.75 million units.
• Price Per Unit: $1.20.
• Unit Composition: Each unit consists of one ordinary share and one share purchase warrant.
• Warrant Terms: Each warrant allows the holder to acquire one additional share at an exercise price of $1.65 per share.
• Warrant Expiry: 30 months from the date of the news release.
• Agent Commission: Cash commission of 6.0% of gross proceeds paid to A.G.P. Canada Investments ULC.
• Broker Warrants: The agent received non-transferable warrants representing 3.0% of the aggregate units sold (112,500 warrants), exercisable at $1.65 per share for 30 months, subject to a hold period of four months and one day.
• Regulatory Basis: Listed issuer financing exemption under Part 5A of National Instrument 45-106.
• Use of Proceeds: Accelerate resource definition drilling, metallurgy optimization, technical derisking, and preparation of a maiden NI 43-101 mineral resource estimate and scoping level economics for the Minas Americas Global Alliance rare earth project; remaining funds for working capital and general corporate purposes.
• Status: Subject to final approval of the Toronto Stock Exchange.