Verde Agritech Ltd T.NPK

Does Verde own the credits?

[medxtractor]

Their news release says:

 

"Verde’s silicate rock is rich in the mineral glauconite (the “Rock”), which once processed and applied to the soil removes carbon dioxide ("CO2") from the air through a process called Enhanced Rock Weathering (“ERW”).2 ERW permanently locks CO2 into the new mineral structure.3 "

 

The key phase above is bold and underlined. Verde may "process" but it does not "apply" - it appears that both conditions are required and it is the final linear step of "application" (it can't be applied without first being processed) that determines the ownership. Verde doesn't "apply" so by their own definition they don't own the credits. This said, Verde may have fine print in their contracts but I'm not sure the buyers would agree to the carbon credit grab if they knew what they were looking at. An informed investment decision would need clarity on this issue.

[kanerfalk]

The question is whether the farmer wants 50% discount  without carbon credits attached or 50% premium with attached credits!? In the end I think the easiest way is for Verde to use the credits and give the farmers a discount and make sure the company makes a profit. I'm sure it's no rocket science to add that to the sales contracts.

[Maxime94]

Kanerfalk .  I don't agree with you .  a farmer in brazil dont need carbon credit .  big poluting corporation yes .  So , why are you talking about giving a discount on potash sales to farmers ?  It's not necessary . I am happy you are not in charge

[kanerfalk]

Mxime, From the NR 19 July "Verde plans to use carbon credits to reduce the price of the Product to farmers while increasing overall profitability, therefore further incentivizing the substitution of KCl." you do know that there is a huge difference between KCl and the Glauconite that Verde sells? They have always given a discount, now they can increase it to speed up the shift

[nozzpack]

It's not an unreasonable model, as it's what I have stated here previously . You kill two birds with one stone. The farmers are price subsidized to substitute Glauconite for KCI which is paid for by the much larger revenue streams from Carbon Credit sales which are produced when the farmer ploughs his fields and fertilizes them. This model has been well thought through by management in

[Maxime94]

:-D  ok good .  So it would be a tool to hike the sales faster  If they do so, I hope they give some discount , not all the discount . We need the max value out of this