BAKS AnnouncementJust finished listening to the new video covering the introduction of BAKS, all very positive as expected.
CV mentioned that the plant to process the new products was already built, product was coming off the production lines, and sales should begin in Q1 2021. I am assuming this is a modification to the existing plant at Sao Gotardo, which means it was not a huge change and did not require significant capital investment.
CV did not mention where Verde was sourcing the sulpher from, nor the cost of the new ingredients - perhaps that will be covered in the promised Q&A postings. Also not mentioned was the price of the BAKS product compared to the K-Forte and Greensand.
He did confirm 900 individual farmer accounts as current customers and 300,000 hectares of land under K-Forte fertilizer. These would give Verde an existing customer base to introduce the BAKS product before going out to the market.
I believe CV suggested that the new products would allow Vered to satisfy the full inventory of fertilizer additives required by a farmer so as to allow them to use a single supplier to source all their fertilizer needs.
Looks like any concerns about technology innovation diverting effort and capital from the core business plan are unfounded at this point. So as previously said, this all looks positive and should have a cumulative impact on results in 2021.
Shares trading at $0.84 after the presentation.