Verde AgriTech reports that it has signed a marketing and distribution agreement with a leading North American distributor that specializes in the markets for organic agriculture and cannabis. The unnamed distributor will have exclusive rights over the Pacific Northwest region of the United States and non-exclusive distribution rights for the rest of the country. The distributor has agreed to minimum volumes for the next four years, and has already placed multiple orders with Verde for Super Greensand® product.
In addition to cannabis and organics, the distributor will work on market development for salinity-sensitive, high-value crops. The main target is almonds in California. Verde estimates American almond production is worth about $6.4 billion dollars annually, and over 80 percent of the crop is grown in one of the most salinity-damaged areas of the U.S.
Verde said it has been granted a fertilizing materials license by the state of California and should soon receive the registration of Super Greensand® as an organic input material. It said the product is already approved by the Organic Materials Review Institute (OMRI) to be used in organic production in all other states.
“We are proud to be partners with a leading American distributor that has a longstanding history supplying the organic agriculture market,” said Cristiano Veloso, Verde president and CEO. “This will allow Verde to join two sectors of rapid growth in North America: organics and cannabis. The seven containers of Super Greensand sold in the U.S. are only the start of a wholesome expansion.”
Verde produces its greensand product in Brazil, and is looking at expanding capacity (GM May 26, p. 26).
In other news last week, Verde announced a non-brokered private placement to raise up to C$1 million through the issuance of up to 952,380 units of securities at a price of $1.05 per unit.