Verde Agritech Ltd T.NPK

Revises Upwards Its 2021 Revenue Target, and Provides Update

[Betteryear2]

BELO HORIZONTE, Brazil, Sept. 27, 2021 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) ("Verde” or the “Company”) is pleased to announce an increase in its 2021 revenue guidance to R$90 million and to provide an update regarding sales and the construction of its second production facility (“Plant 2”).

As disclosed in the press release published on November 16, 2020, the construction of Plant 2 was scheduled to begin in the second half of 2021. Groundbreaking took place in August 2021, and Plant 2 is expected to reach commercial production by Q3 2022.

Plant 2 will have an operational capacity of 1,200,000 tonnes per year (“tpy”). The new plant will raise Verde’s overall production capacity to 1,800,000 tpy.

“The Company is sold out until mid-November 2021, with new orders being pushed for delivery thereafter. Plant 2 will ensure a 200% increase in production and will be essential to help meet the market’s growing demand for Verde's products. We are proud to be able to fund its construction through cash flow and debt, therefore avoiding the issuance of new shares”, declared Cristiano Veloso, Verde’s Founder and CEO.

Capital Expenditure
Plant 2 capital expenditure totals 22 million Brazilian Reais (“R$”), with R$6 million to be invested through internally generated cash flow and R$16 million to be debt-financed. The Company is in advanced negotiations with a number of financial institutions and expects the loan agreements will be concluded by Q4 2021.

2021 Guidance
Verde is pleased to increase its 2021 revenue target to R$90 million. This represents an 80% increase to its original guidance of R$50 million revenue. If achieved, the new target will represent a 155 growth Year-on-Year (“YoY”).

“Blitzscaling is never an easy endeavour, but I’m confident we have built the right team to continue succeeding at this challenge. It is still day 1 at Verde”, concluded Mr. Veloso.

For additional information please contact:

Cristiano Veloso, President, Founder & Chief Executive Officer

Tel: [phone]; Email: [e-mail]

www.investor.verde.ag | www.verde.ag | www.supergreensand.com

https://www.globenewswire.com/news-release/2021/09/27/2303468/0/en/Verde-Revises-Upwards-Its-2021-Revenue-Target-and-Provides-Update-on-Sales-and-Plant-2-Construction.html

[ICT1111]

Increase in guidance from 60.5m to 90m brazillian. At today's exchange equals C$21m compared to last years C$9.2m.... very impressive.  Plant 2 should be operative in time for our peak Q3 sales: should be able to produce 4-500k tons to add to plant 1's 600k capacity..... should be more than enough.  Sold out until mid Nov; perhaps that's why we have seen the recent 20

[PedroPistacio]

Yes, a very positive statement in my mind and I am looking forward to seeing how the share price reacts, particularly after a few weeks of downward drift on no news and fairly thin volume. 

[PedroPistacio]

A question to our data guru Stan, does the update on expected size and completion of Plant 2 fit in with earlier guidance, or is it different in any way?  On the basis of this Plant 2 update, combined with news that the company has now sold out of product until November, suggesting that demand is building, would you agree that the next big hurdle is the permitting so that enough supply can

[15Stanmore]

Hello Pedro, The Plant 2 update is consistent with previous announcements and what we are seeing in drone photos taken over the mine site. Work has commenced at the Plant 2 site which is co-located at the current mine sites. The 1.2 million tonne capacity is in line with the info we have been given to date, although it is being planned for a phased construction approach. We understand that it

[PedroPistacio]

Thank you for that reminder Stan. 

[sparkdog]

Excellent.....minimal additional debt and NO share issue.