Verde AgriTech Ltd. T.NPK

2022 "Dividends"

[15Stanmore]

Hello fellow Verde shareholders,

An interesting and unexpected news release from the Company today.

If the Company does indeed have net earnings in 2022 of around $43.5 million, it will reverse its accumulated loss position and will report positive retained earnings of around $25 million. This would allow a $10 million distribution to be made and to be reported as a "dividend" rather than as a "return of capital".

Assuming a 20 cents per share dividend, the CEO will receive a payment of $1,890,309 on his current holding of 9,451,547 shares. He will also be assessing whether this dividend payment would be sufficient incentive for him to exercise the remaining 1,992,030 options (at strike prices of $0.61, $0.63 and $1.22). Given his weighted average purchase price would be $0.84 ($1,675,808 in total), the $398,461 in dividends would look like a pretty good immediate return at 23.8%.

If the remaining options were exercised, the CEO would then hold 11,443,577 shares of a total issued and outstanding of 52,390,648 or 21.84% of the Company. His average cost per share for the 11,443,577 shares then held would be $0.553. 

At todays price of $10.30, the CEO's expanded holdings would be worth $117,868,843 with an adjusted cost base of $6,352,630. This produces an as yet unrealized capital gain of $111,516,213 or a 1,700% increase over the original cost.

I hope you find this updated information helpful.

All the best.

S.

[PedroPistacio]

I had calculated a similar return. I don't begrudge a business creator from making money provided that he/she treats their fellow shareholders properly. 

[KirklandX]

This news truly delights me. CV founded and built this company, and created all of its value. He stuck with it through a long period when the rest of the world didn't care. He richly deserves all of this upside and more. I have invested in too many companies where management don't have meaningful equity positions, and worse - pay themselves oversized salaries. I find this alignment

[Benedictus]

  I'll admit to being quite frustrated with his overly generous options and bonuses in the "darker" times of Verde but on the whole, Cris learned some hard Bay Street lessons early on in his career and thankfully became  a leader who not only aligned himself with his investors but who is a true financial steward, in word and deed. The mining sector is littered with pocket

[Charlottetown]

Thank you Stan for all your well researched posts over the past few years. I bought in around 2015 as I believed in the companies goals. I considered selling on numerous occasions over the past few years but really glad I didn't because of you and your accurate financial postings so Thank you  for taking the time to break down the numbers for us!

[15Stanmore]

Hello Charlottetown, Thanks for the positive feedback. The significant progress being made by the Company in 2021/22 is well beyond my projections, as is the share price appreciation. I currently see continued upside with very little downside at this point - it will just be a case of waiting to see how quickly investors who have not yet staked out a position in NPK shares will get on board. After

[Charlottetown]

Yes, Stan I have to agree. The rise to 10 and 11 + dollars went up at warp speed and it looks like the sanctions on Russia and Belarus created the opportunity to fast track the schedule for construction of additional processing plants. I'm feeling more comfortable that the products do seem to meet or exceed customer satisfaction which was big question mark for me. Thanks again!