Verde AgriTech Ltd. announced that it has secured CAD 16.2 million -BRL 60 million in debt financing facility from Banco do Brasil S.A. and Banco Bradesco S.A., the two largest Brazilian banks. The funds raised will be used to replace existing debt that were at higher interest rates and provide the Company with more favorable terms, including 6 months of grace period for Bradesco?s loan and 12 months for Banco do Brasil?s loan. This will enable Verde to offer financing solutions to potential customers, whilst fostering growth and financial stability.

The Financing consists of CAD 10.8 million in debt from Banco do Brasil, Brazil's largest bank (BRL 40 million), of which the Brazilian Federal Government retains a 50% share; and CAD 5.4 million from Bradesco (BRL 20 million), the second largest financial group in Brazil. Additionally, Verde currently has CAD 20 million (BRL 74 million) pre-approved credit with banks in Brazil. The loan granted by Banco do Brasil received a Sustainability Certificate distinguishing it as a sustainable financial operation.

The Certificate is awarded to financing activities included in Banco do Brasil?s1 evaluated against a diverse array of national and international standards and taxonomies. The purpose of BB's Sustainable Business Portfolio is to encourage the expansion of enterprises and initiatives that directly contribute to Brazil?s sustainable development, by offering services and resources aimed at addressing social-environmental issues. The Certificate awarded to Verde falls under the Environmental category, which encompasses projects like forest restoration, low-carbon agriculture, and the rehabilitation of degraded areas, all of which are undertaken by the Company, which integrates sustainable practices throughout its operational process as a core value.

For a transaction to receive Banco do Brasil's approval within the Sustainable Credit framework, it undergoes a rigorous evaluation encompassing Environmental, Governance, and Social dimensions. This assessment entails: Analyzing the sustainability of production processes; Ensuring the Company's financial statements undergo third-party auditing; Gauging the brand?s reliability and reputation; Verifying compliance with national and international quality standards; Reviewing the competence of the management squad; Checking for any recorded discrepancies with government agencies; Assessing transparency in the Company's communications. The Financing transactions were structured as follows: Banco do Brasil: CAD 10.8 million loan (BRL 40 million), with an interest rate of CDI3 + 3.60%.

The loan term extended to 36 months, including a grace period of 12 months. Payment was scheduled with three annual instalments of principal and interest, due in August 2024, August 2025, and August 2026. Bradesco: CAD 5.4 million loan (BRL 20 million), with an interest rate of CDI + 3,61%.

The loan term was set at 24 months, featuring a grace period of 6 months. The payment schedule included the first 6 months with monthly interest, followed by 4 semesters payments of principal in March and October for the next two years. Out of the total Financing secured, CAD 9.5 million (BRL 35 million) has been allocated towards the settlement of six existing loans.