Verde Resources, Inc. Announces Major Supply Agreement with Biochar Solutions LLC

Verde Resources, Inc. (VRDR) has reported the entry into a material definitive agreement that may have significant implications for the company’s operations, revenue streams, and long-term value proposition. This development is detailed in the company’s Form 8-K filed with the SEC, dated March 19, 2026, covering an event on March 14, 2026.

Key Points of the Supply Agreement

• Parties Involved:
  • Verde Renewables Inc. (“Verde”), a wholly owned subsidiary of Verde Resources, Inc.
  • Biochar Solutions LLC (“BSL”), a specialist in biochar manufacturing.
• Scope and Purpose:
  • BSL will manufacture, supply, distribute, and white label engineered biochar for incorporation into Verde’s products as well as those of its customers.
  • The agreement is intended to serve as the foundation for a binding commercial partnership governing long-term biochar supply, carbon credit revenue sharing, and joint technology development.
• Annual Volume Commitment:
  • BSL will initially supply up to 38,500 U.S. tons of biochar annually (“Initial Supply”) to support Verde’s engineered product portfolio and carbon credit strategy.
  • Annual volume is measured from March 1 of each calendar year.
• Product Pricing:
  • Three categories of biochar will be supplied, each with specific pricing (actual prices redacted):
  • Carbon Credit Certified BSL Biochar
  • Non-Carbon-Credit Certified BSL Biochar
  • High Ash Content Char
  • Pricing per ton will be mutually established and reviewed annually as of January 1, reflecting production costs, freight, and market conditions.
• Certification Requirements:
  • At least a specified percentage (redacted) of the BSL Biochar blend must be certified for carbon removal according to methodologies accepted by major carbon credit purchasers.
  • If compliance markets are enacted in the U.S., certification requirements may be updated accordingly.
• Carbon Credits Integration and Revenue Sharing:
  • BSL and Verde will jointly report on carbon removal credits generated through the integration of BSL Biochar into Verde’s products.
  • The two companies will split revenues derived from the sale, transfer, or monetization of such carbon removal credits equally (actual percentage redacted).
  • BSL will allocate to Verde a specified percentage of credits or the economic value thereof, pursuant to terms in a future agreement.
  • Verde may offset a portion of BSL’s carbon credit revenue share against BSL Biochar supply invoices upon mutual consent.
• Agreement Duration:
  • The agreement is effective for five years from execution and is renewable for an additional five years upon mutual written consent no later than 120 days before expiry.
  • The subsequent agreement will contain customary terms for termination by either party.
• Governing Law:
  • The agreement is governed by the laws of the State of Missouri, USA.
• Signatories:
  • Eric Bava, Chief Operating Officer, Verde Renewables Inc.
  • Greg Blair, Managing Partner, Biochar Solutions LLC.

Shareholder Considerations and Potential Price Sensitivity

• Revenue Potential: The integration of biochar supply and carbon credit revenue sharing creates new potential revenue streams for Verde Resources, Inc. This positions the company to take advantage of emerging carbon markets and environmental regulations.
• Long-Term Partnership: The five-year renewable term signals a long-term strategic relationship, reducing supply chain risks and ensuring stable product access and revenue opportunities.
• Carbon Credits: The agreement’s focus on carbon credits and certified products positions Verde to benefit from increased demand for green, low-carbon products and potentially lucrative carbon credit sales.
• Growth Prospects: The volume commitment (up to 38,500 tons/year) indicates plans for substantial scaling in Verde’s biochar and engineered product business lines.
• Competitive Advantage: The joint technology development provisions may help Verde stay ahead of competitors in the rapidly evolving carbon removal and biochar sectors.
• Risks: As with any supply and revenue sharing agreement, execution risks exist, including pricing dynamics, certification compliance, and regulatory changes that could impact economics.

Financial Reporting and Transparency

The full text of the Supply Agreement is filed as Exhibit 10.1 to the current Form 8-K, with certain portions redacted pursuant to SEC regulations regarding confidential treatment. Investors and analysts are encouraged to review this exhibit for additional details, subject to redactions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult with financial professionals before making any investment decisions. Forward-looking statements may not materialize as expected. The information is based on SEC filings as of March 19, 2026.

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