Veratin Ltd (NSX:VTN) is excited to announce the recent signing of two new supplier agreements for its Verigrow range, consisting of liquid fertilizer and soil improvement products. The agreements comprise:

1. A binding Goods Supply Agreement with QFH Multiparts (QFH) for a minimum annual purchase of 10,000 liters of Verigrow®. The contract spans two years, with the option for Veratin to extend it for an additional three years.
2. A Supplier Agreement with Elders Rural Services Australia Limited (Elders Rural) for the provision of the Verigrow® product line, following the unveiling of comprehensive broadacre trial results on January 9, 2024.

Elders Rural and QFH are esteemed distributors of agricultural products and services in Western Australia and across the country. These agreements underscore the success of previous product trials and are poised to bolster sales growth in the near term.

Veratin Ltd is looking to undertake a retail placement using an Offer Information Statement (OIS) to raise up to $500,000 via the issue of 5 million shares at an offer price of $0.10. 

The $0.10 offer price represents a 23% discount the $0.13 NSX trading price as at 30 January 2024.

Veratin's technology transforms low-grade wool into sustainable, high-value products for various industries, unlocking its inherent value.

The company possesses intellectual property in the form of patents and trademarks, including the National Phase patent for Organic Fertiliser and Soil Improver. The IP strategy involves pursuing this patent in major agriculture and wool-exporting markets, with National Phase patents already filed in multiple jurisdictions.

Veratin holds trademarks for Verigrow® fertilisers and soil improvers, Veratin™ shampoos and conditioners, and Baa baa™ beverages. Additionally, the company holds a worldwide exclusive license for utilizing patented IP related to a biodegradable polymer, poised for applications as a replacement material for plastic in consumer products. Veratin also possesses a provisional patent for the preparation of alcoholic and non-alcoholic fermented products using wool.

Australia's fertiliser market boasts a size of $8 billion, ranking as the 10th largest globally. Between 2018 and 2023, the Australian market has experienced an average growth rate of 11.6%. The global fertiliser market reached USD 212 billion in 2023. Notably, there is a shift in the market towards sustainable fertilisers with a reduced environmental footprint.

Forecast U.S. Fertiliser Market Size

Veratin has established significant partnerships, trial collaborations, and supply agreements with the following entities:

1. VegetablesWA Trial Partnership: Veratin inked a Trial Partnership agreement with vegetablesWA to facilitate horticulture demonstration sites in Western Australia. These sites will be supervised by an agronomist and a regional development officer. The demonstrations encompass three vegetable sites (lettuce, broccoli, and tomato) and two fruit tree sites (in collaboration with Stonefruit WA).

2. Commencement of Turf Trial: Veratin has initiated independent product testing in a turf trial in collaboration with Betta Turf farm and Sport Turf Technology. This trial will assess the effectiveness of Verigrow® Fertiliser and Soil Improver, as well as Verigrow® Soil Wetter, in comparison to commonly used industry products.

3. National Supply Agreement Executed: Veratin has entered into a National Supply Agreement with Australian Independent Rural Retailers (AIRR), as previously announced on November 13, 2023. AIRR, a locally-owned entity under Elders Limited (ASX: ELD), specialises in the wholesale distribution of animal feeds, fertilisers, agricultural chemicals, and other farm supplies to agricultural retailers across Australia.

4. Broadacre Market Traction: While Veratin has predominantly employed a direct-to-consumer distribution model through its e-commerce website, it has recently enlisted the assistance of Primary Agronomy to support the expansion of Verigrow® in the broadacre market. Notably, the company secured its first 3,000L order in 2023 for broadacre crops following successful independent trial results on wheat.

In addition to its fertiliser applications, Veratin's existing technology extends to the transformation of low-grade wool into various valuable products, including biodegradable biopolymers, nutraceuticals, functional foods, and cosmetics. Each of these product lines operates in expansive markets, offering Veratin diversification and significant growth prospects.

Biodegradable Biopolymers:

Biodegradable polymers break down into natural by-products through the action of naturally occurring microbes such as algae, bacteria, and fungi. These eco-friendly and non-toxic polymers have diverse applications, including controlled drug and gene delivery, tissue engineering, medical implants, surgical sutures, and more. Veratin has introduced its Verigrow® biodegradable plant pots as part of this initiative.

Nutraceuticals and Functional Foods:

Veratin disclosed successful proof-of-concept experiments on September 28, 2023, showcasing the isolation of amino acids and peptides from wool. Ongoing research focuses on the prepared amino acids and feasibility studies for scaling up. Simultaneously, the company has advanced its provisional patent application, 'Alcoholic and non-alcoholic fermented products and method of preparation,' through the filing of a PCT application. Veratin is leveraging this intellectual property for future products under its Baa Baa™ range of nutraceuticals and functional foods.

Cosmetics:

Veratin has opted to venture into the development of cosmetic products, specifically incorporating liquid keratin due to its potential in a lucrative market. The company launched its first two products in 2023 - Veratin™ Shampoo and Veratin™ Conditioner for Men. These products contain natural extracts such as eucalyptus, tea tree, aloe vera, and orange peel oils. Veratin plans to expand its cosmetic range by introducing new products, such as Veratin™ Shampoo and Conditioner for Women with a floral scent. Concurrently, the company is also in the process of developing a cleanser, exfoliator, serum, moisturiser, and eye cream.

Liquidity strongly advised to thoroughly review the Offer Information Statement, as it provides comprehensive details about Veratin Ltd and the Offer. Similar to any investment, participating in Veratin Ltd carries inherent risks. As outlined in Section 6 of the Offer Information Statement, Veratin Ltd is exposed to various risks, including, but not limited to, challenges in safeguarding intellectual property rights, the approval of patents, potential risks associated with rapid growth, competition, reliance on key personnel, distribution agreements, commercial manufacturing and distribution capabilities, and dependency on wool suppliers.