Reberth Machado: Good morning, everybody. My name is Reberth Machado. I'm the new CEO here at Verde AgriTech. Today, we're going to be talking about a brief introduction about the company, the market situation in Brazil. We're going to be looking at the financials for the second quarter, when I'm going to turn this presentation over to our CFO, Mr. Paolucci, and we're going to hold the Q&A section at the end. So let's get started. So the company -- just for you guys to have a brief idea, we've recently changed the management. My name is Reberth Machado. I'm the new CEO, as I said. I'm a chemical engineer with almost 30 years of experience in the agricultural section and technology development, both in Canada and Brazil. I spent almost 13, 14 years as CEO in a sugarcane mill here in Brazil. Recently, I was working in a company in Canada, converting biomass into biofuels. And I decided to join Verde as a new challenge to develop new markets in Brazil and increase our sales, talk to different clients, focused pretty much on the B2B business and institutional relationships. The management is still the same. Marcos Ribeiro is still our Chief Revenue Officer, and Felipe Paolucci still as a CFO for us. So talking about the investment highlights, what actually brought me into Verde? Well, Verde has already made a $500 million investment into research and development and infrastructure and plant capacity. So there is no need for CapEx for further CapEx to reach our full capacity at 3 million tonnes per year of potassium production. The project is pretty much scalable. We can reach up to 6 billion tonnes of resources pretty quickly in Brazil without much further investment. We're located in the heart of Brazil agricultural sector. We're in the heart of Minas Gerais, pretty close to the major consumers or consumers of our products in Mato Grosso, Mato Grosso do Sul, Sao Paulo, Tocantins and Goias. We're pretty much proud of our end-to-end control. We are 100% vertically integrated producer, meaning that we have the resource, we mine it, we grind it, we pulverize it, we transport that and even the mixtures are made into our factories or into our facilities. We're pretty much focused on specialty fertilizer for sustainable agricultural applications. Our product promotes the microbiotic of the soil, do not salinize it. And we're focused on the regenerative agricultural sector. We also have a large carbon avoidance footprint. Our product compared to potassium chloride has an 89% carbon reduction. Talking about our full value chain that is already in place, as I previously mentioned, we operate pretty much from the extraction of our resources into manufacturing, into our final products. We currently have 2 plants. plant #1, where we do a mixture or a blend -- not a blend, but a mixture of our specialty products. And we have our large facility that is focused on bulk materials, large amounts. We also have our in-house R&D facility where we test our products, where we develop new products. And we also have our field validation where we test our own products in small areas to improve its efficiency. Verde, just to give you guys an idea about Verde potential into the Brazil market -- in Brazilian market. Currently, Brazil imports pretty much 50 million tonnes of potassium chloride per year. Given our resources sitting at close to 5 billion, 6 billion tonnes per year, we have enough to supply Brazil 100% of its demand of potassium chloride, or potassium in that case for over 70 years.

Felipe Paolucci: So just some comments I'd like to make here. As everyone knows, our focus targets on the states that are in green in this page. And the factory is located in the east of Minas Gerais states. And the green point here also in the chart shows where [indiscernible] and [ Magnes ] are based actually. So they are closer to the market, closer to the key customers where we really want to be side-by-side to be close to them, having face-to-face meetings. And this we think that will be something that will help us a lot in the coming periods. And also our sales force team, our key field sales are also located in Sao Paulo, Goias, Minas Gerais and South of Mato Grosso. So we believe -- we really believe that the freight competitive there is much better for us. The cost per ton is lower. And then it's easier to provide additionally the discounts to clients or even though have higher gross margin and gross profit in this situation. So just to highlight how big the focus market is, it's around 6 million, 7 million tons per year. It's where we want to focus, where we want to sell. And if you make a calculation just on 3 million tons per year, that's our full capacity. It's not even, like, close to 5% or around this on market share. So the opportunity for the coming period, it's big, we will see in the coming charts a bit on the crisis [indiscernible] in the sector, et cetera, but we do believe that it's going to be ending soon and then we're going to come back to growth situation, et cetera.

Reberth Machado: That's a great point, Felipe. Like I said before as well, like, we're strategically located in the heart of Brazil's major production or agricultural sector in Brazil, pretty close to all the states that Felipe just mentioned. Talking about the potential -- our potential economics. Like I said, the company has made already the investment to reach 3 million tons capacity production per year. And that would actually yield us a close to CAD 200 million in revenue that would be equivalent to $70 million in EBITDA, which is 35% of our EBITDA in terms of our percentage and yielding a net profit close to $40 million. So our focus here today is to expand our commercial operations to increase our sales volume in Brazil, currently -- current situation for the market in Brazil is quite challenging as we're going to see ahead. But that's our focus, and that's our major -- that's our potential to reach, and we're working towards that. Talking about the Brazilian economic scenario, like we're sitting -- we're in a year of elections in Brazil. That actually caused a lot of uncertainties and people are actually reevaluating investments in Brazil. Our interest rate in Brazil is still quite high, actually dropped 25 points, but still sitting at 14%. It's worth -- it's good to know that nobody actually gets the money at 14%. So we're talking about a spread over between 6% and 7% or sometimes 8%, which actually brings us to a total cost of borrowing around 20% to 22% a year, which is quite high. There is a big credit crunch in Brazil currently. All the producers and our clients or distributors, they're lacking access to new money because of -- they have been -- in the past, they have been highly leveraged. So the renewal rate of new investments in Brazil today is quite low. And in that situation, everybody is reviewing their investment opportunities and holding further investments a bit. Canadian dollars also -- actually also dropped in terms of reais. Our currency in reais increased and -- which in terms of sales, it might help us because the producers are able to export more products. So it might have a higher demand, but that actually has a counter effect on our revenue and our numbers in Canadian dollars. I already mentioned that the credit quality -- crunch in Brazil is quite high currently, and that creates a big burden or overburden in our credit analysis internally. And we have been reluctant to sell too much. We're being very thorough in credit evaluation internally, which also reduces the volume of sales over time. And like I said, there's an election year. This year is an election year in Brazil and also the El Niño forecast adds to the overall complexity of the situation for the agricultural sector in Brazil. Just to highlight the crisis in the agricultural market, we're not just talking about Verde, but all the major producers like Raízen, AgroGalaxy, Lavoro, they're also fighting for a company restructuring. Pretty much it's the beginning of a Chapter 11 filing. So just to highlight that again, it's not just the situation. It's an overall market complexity that is dropping the volumes. We're not being able to hit the margins that we had before as we're going to see in the next graphic.

Felipe Paolucci: Just one point here that I'd like to comment as well, the second bullet on the left side of the chart, Lavoro prepares to file for bankruptcy protection. This is something -- the key points that hit our Q2 bad debt provision. As I present as well in our numbers, we have around 400,000 to 500,000 on bad debt provision. This is basically on the Lavoro side where we had sales for them around 2023 and 2022, then the collect should be made on 2024, but they did not pay, they renegotiate for year. And then they pay for the first installment and then just 3 months ago, they said, well, we will not pay anymore, we need to renegotiate, et cetera. So according to our policy, we were pushed to make this provision and this hit our [ EBIT by half a million ].

Reberth Machado: Fantastic. Like I said before, that's the agricultural cycles in Brazil since 1980. You guys can see that the fertilizers -- even though the grain prices went up 134% based on a baseline that began in 1980, the fertilizer cost actually went almost doubled. They went to 226% up. So that actually shortened the margins for the agricultural or for the producers in Brazil. And therefore, everybody is reevaluating, like I said before many times, their investment strategies for this year. I believe that's it for me. I'm going to be turning over to Mr. Paolucci, our CFO. He's going to go through the highlights of our financials, and we're going to host a Q&A section at the end. Thank you very much.

Felipe Paolucci: Okay. Thank you, Reberth. So first, the key highlights that we have for the quarter. Our revenue in Q2 was [ $3.4 million ] compared to $4.8 million in Q2 2025. And sales volume were 46,000 tons compared to 80,000 last year. So excluding freight cost or delivery investments, et cetera, the average revenue per ton increased to 40 compared to 38. The profitability remains resilient and average gross profit per ton. Here, we exclude freight impact again as we [ pointed ] in another chart that this has a significant impact in our numbers, but we still have a better result from $22 to $23 per ton. So it means that our efforts that we are doing in terms of cost reductions and SG&A reduction, they are bringing to us some results. I will talk a bit more about these reductions as well in the next charts. Our SG&A decreased by 10% in Q2 compared to last year. EBITDA before non cash events was $1.2 million negative compared to $0.2 million last year. And net loss, we were $1.2 million or even worse than we had in the previous year. So in terms of cash, as June of 2026, the company had $4.1 million in cash and 5.7 million short-term receivables compared to $2.4 million last year and $8.2 million short receivables in June 2025. Here is the key chart on the financials. We can see the first lines here the [indiscernible] -- numbers per ton. So we have the total sales Q2 and then year-to-date comparing against prior year. You can see that the revenue had a significant improvement, but here we have the freight impact, as I mentioned, we're going to see this also later on in the next chart, excluding this impact. We can see here as well the allowance for expected credit loss, which is the bad debt provision, as I spoke before, CAD 518,000 basically mainly due to the Lavoro situation. And at the end of the day, the EBITDA, we had a worse number around CAD 1 million compared to last year. The operational summary, we can see 2 tables, the first one, including the freight revenue and then the second one, we exclude this impact from our results. The key takeaway from this chart, in my opinion, is that you can see that the gross margin at the end of the day remains resilient, the remaining 57% compared to 58% last year. So this means that in Q2, we were able to -- even though with lower volume to dilute fixed costs because we've made some new projects. And also, we are working really hard to reduce expensive contracts, fixed costs, SG&A items. we've made some reductions. Actually, we made some more reductions on headcount this week in the factory. And we are now prepared even if we have higher volumes to come, we are prepared to deliver because we do have in the [indiscernible] a very good fantastic news, and then we are not using them now at this point, but we can increase volume without increasing cost. So my expectation in the coming periods is when we start to see the volume growing again, increasing again, we can -- will see for sure, our production cost per ton going down. So since as Reberth showed in the chart before, we are fully verticalized company. We have [indiscernible] mining, the mining up to the delivery to the clients. So most of the costs are controlled. And then we -- of course, we can mitigate impacted EBITDA and improve numbers once we grow in volume, SG&A and costs -- fixed costs will be diluted. So it's our expectation for the coming periods. In terms of SG&A, we can see here the key reductions we've made. So first, for example, in sales and marketing expense, over 12% reduction. Of course, the fees paid to sales [indiscernible] decreased because the volume went down and then this is automatically impacted. But the key point like SG&A, for example, general and administrative expenses, we're revising contracts like SAP, Salesforce and among others contracts, legal counsel, et cetera. We are trying to mitigate as much as we can and working on negotiation and reduction on costs. That's the key point that my team and I, we are working on this news. So now I think we should come back to Q&A, Reberth, this is what I have for numbers. So please, if you did not share and send your questions so far, please do so. We do have already a few questions here. So I will address this to Reberth, so I can together answer the questions, the ones that are related to factory or financial, I can support and then the other ones on marketing and clients, et cetera, Reberth will handle.

Reberth Machado: Okay. Thank you, Felipe, for your brief update on the economics, on the financials -- sorry, not the economics, but financials. I'm going through the questions here as we speak. And there is a few questions about production, the volumes that appears to have been substantially lower than last year. And that's true, but it's not just a situation for Verde. Everybody is facing the same. Since I joined Verde as of June 1, I've been traveling throughout Brazil pretty much talking to different clients, distributors, consultants, professors, attending seminars and conferences. And it's unanimous that the volumes have been -- have substantially dropped in terms of sales in Brazil, not only for Verde. Our 40%, 42% drop in volume is pretty much aligned with the current overall market today. Some people are doing even worse, but that's one of the points here. There is a question here about debt renegotiation. Felipe, you would like to expand on that?

Felipe Paolucci: Yes, sure. So the question is that could you give us an update on debt renegotiation where discussions currently stand? What kind of timeline to expect, and what outcome we're seeking? Are you primarily looking for extended maturities and lower interest costs? Or is principal reduction also part of the discussions? Well, what I can say, yes, we are talking with our creditors, our banks. We have 7 to 8 creditors at this point. And they are aware of the current situation, and we are willing to renegotiate in the medium term. It's not something that will happen fast. It takes months, sometimes even years or 1 year or more to finalize the plan, et cetera. We do not know yet what we will be able to achieve in the renegotiation. But for sure, we will have to fit the repayment accordingly to our medium-term plan. So it does not make sense to set up a plan that we are not able to achieve or to fulfill in the next 12 months. So the key point is that, I'm trying together with Reberth, he has a great experience on this in his past and other companies as well. We are working on to try to do something that will be definitely for a long term and will support us. So this could be just an interest rate reduction, just rephasing the debt or even though discounting the key point. I think I'll keep moving because the next one is related to the [ factory's leverage ]. So the production...

Reberth Machado: You want to do that? Okay. I was going to read that. But go ahead. The inventory...

Felipe Paolucci: Yes. Magnus made some good questions here. Production for Q2 appears to have been materially higher than the tonnes sold, resulting in inventory build. Was this intentional stockpiling in the anticipation of stronger Q3 sales? Or were these tonnes originally expected to be sold during Q2, but customers' purchases were delayed? Given the storage characteristics of the crushed product, how do you manage the risk of holding significant finished product inventory? Well, first, the capacity in Plant 2 is quite big. So once we start to produce, we had some, like, sometimes 300, 400 tonnes per hour being produced. So sometimes it's better to have a higher inventory than just to produce a lower amount. We have it in our warehousing. There is also another question that Reberth can address now that was asking, well, is there any risk in your product in terms of humidity or any other risk once we have it in inventory? No, we do not have this risk because as we see -- you can see in the photo of our Plant 2, the inventory is located inside of our warehouse, which is fully covered without any type of risk to get wet or to get dry in the sun, et cetera. So we are pretty comfortable to have a bit more inventory there and our capacity is, like, over 15,000 tonnes in this warehousing. So we did not build this inventory to -- just to achieve or to supply Q3, but it's, like, a new strategy as well and operation cost to mitigate cost to turn on and off, turn on and off the line. So sometimes you just run for 8 hours straight day and maybe we keep 2 days without running because we have the spare capacity at this point. So that's the key point that we...

Reberth Machado: There's another good question here, Felipe. Given the current sales volume and inventory build during Q2, have you considered temporarily reducing or halting the mining and production activities and selling from existing inventories to preserve cash? If so, what the level of inventory do you currently have available? And how long could you support expected sales? As Felipe mentioned previously, we're doing a really big reduction in headcounts currently as we speak, I would say, especially to address that. We're -- given the lower volume expected for Q3 and Q4, we're reducing the production, our team count. And what we have in hand in terms of inventory, even though it's low, like, we don't keep, like, high inventory. We pretty much produce as just-in-time per se. We're going to be able to address the volume or the demands for the next years, but at a much lower cost because of the reduction in headcount.

Felipe Paolucci: And also just something, it's good to have 8,000 to 10,000 tonnes in stock all the time because sometimes it could happen a big customer or a big client just had some issues, for example, with other supplier, and we will be able to answer and ship right away 10,000 tonnes, I would say, yes, we can. So it's not that expensive because remember that we do not have any inventory in special products, products that use phosphate or any other, like, boron or sulfur, we do not have them in inventory. We do make products -- produce them around according to the orders. So the key inventory that we have is the K Forte product, which is, let's say, the cheapest one in terms of cost and working capital. So at the end of the day, the impact is not that relevant to have 8,000 tonnes to 10,000 tonnes on K Forte inventory in our hands.

Reberth Machado: And again, like Felipe already mentioned, we have no problems in terms of shelf life for the product. We have no problem in storing the product for a certain amount of time. And there's one final question here that I think it's interesting for us to address, Felipe. This person is asking about, do you have big buyers coming in soon? Or should we expect big clients to take a few more trimesters before actual deals are closed? The expectation is that all the major clients that had bought from us in the past have not been -- have not made the decision yet of buying. So we're addressing that. We're talking weekly with them to see if they have changed their minds. Our sales team are still working, hitting the road, talking to different people, looking if the new decision has been made. So to address your question, yes, like, we do expect those big clients to come back this year, but they're not -- as we have been told, they're not ready to make the decision as yet. So -- and we can see that throughout the market. Everybody is delayed in terms of volumes expectations for this year. It's not any different for us at Verde. There is a question here about deterioration of the product. Felipe already addressed that. There's no problem in terms of shelf life for us to store. Some questions about Magnes that we cannot disclose at the time, but the right timing, you're going to see a press release when that's due.

Felipe Paolucci: There is an interesting one. Can you please discuss who are your best customers if there was no credit crunch? Is it location-based, crop-based, which crops work best with our products? Why do people sometimes prefer KCl than our fertilizers? That's a good one.

Reberth Machado: Fantastic. We're currently focusing on perennial, and well, long-term crops like coffee, eucalyptus, sugarcane, citrus crops that actually last more than a short cycle of 120 and 160 days. It seems that our product works best on that. We also have excellent results in soya and corn. We have some protocols that are coming with excellent results. We're not ready to share those numbers yet, but initial numbers are showing a great application for those crops yet. And why people still prefer potassium chloride over our fertilizer? Well, people are just used to potassium chloride for decades. Our fertilizer, it's a substitute for that, right? It's a much better product. It releases potassium over time. There is no drifting of potassium, lixiviation of potassium with water, with the rain or with the rainy season. But people are sort of reluctant. They have to test year-over-year to be comfortable and make switch completely from potassium chloride to our products. That's how I see our products today in the market. It's just a matter of time and people to get results year after year just to become more comfortable.

Felipe Paolucci: Yes. And something else as well. I think the last 12 months, since mid-2025 or beginning of 2025, we've made some agreements with some people from universities, consultants in the market. So they are trying and working for our product, and now the results are coming. So after they have the results, they will be able to recommend to their clients as well. So we do believe that with the strong results on hand that we are seeing already, we'll be able in the short term to be -- to make the farmer more comfortable to use our product than keep using KCl because once they have the recommendation from their consultants, then it will be able to be easier for them to shift at least part of their K2O usage from KCl to our product. So we are -- like we said before, the company, not just Verde. I just saw now this morning that Banco do Brasil, which is the largest bank in Brazil that works with agribusiness. They had made public the results yesterday, and then they had over 6.2% of clients not paying them of late receivables. So this is something that's huge. They are not providing a lot of cash as they did before, and the loans are getting more expensive and harder for the farmers. So at the end of the day, we see a lot of orders coming. And then we have the management on credit area that I support here as well. So we cannot sell to everyone. So we are not selling to a lot of clients, potential clients that they were good in the past. But now they have loans. We are able in Brazil to see the maturity of the loans when they have to repay it. So we see that some clients are coming to due for, like, $1 million to be paid in less than 12 months. And if they are not able to renew this payment, I cannot sell to them because if they do not have credit to the banks, they want to renew it, and then they might not pay us in the next cycle. So this is something that we really expect to change in the coming periods, maybe next year already. And then we're going to see again banks refinancing and renewing their loans, and that will be easier for us not to block orders and increase sales volume.

Reberth Machado: So -- sorry, Felipe.

Felipe Paolucci: No, no, that's the key point of the note. Just in terms of credit because we are losing a lot of opportunities, but I prefer not to sell, not me, but the company decided to not sell, then selling do not receive. That's the key point.

Reberth Machado: Yes. That's going to make us -- put us in an even worse situation in terms of cash position. One last question here. As for the big buyers, I was thinking about new big clients like sugarcane. Any news about them? Well, I can speak to that because about that because I was a part of a big manufacturing facility or a big producer of ethanol and sugar in Brazil many years ago. And now that I'm back and trying to be in touch with everybody with my networking and everybody that I know in the industry, the complaint has been the same. The sugar prices are way low, sitting at $0.16 per pound. The ethanol prices are not even -- are not any better than that because there is a lot of influx from corn ethanol in Brazil that is actually dropping the prices for the sugarcane producers. And the cost, just to give you guys an idea, when I left the sector in 2019, the cost for a hectare to be planted in cane was around BRL 7,000 per hectare. Now people are facing anywhere between BRL 15,000 and BRL 20,000. And the prices are still the same when I left 7 years ago. So I hope that answers the question. And we're going to put a stop here on the presentation. Hoping to see you guys in the next quarter with much better numbers and results. Thank you, everybody.

Felipe Paolucci: Thank you.