On May 14, 2024, Verde Resources, Inc. entered into a Heads of Agreement with Zym-Tec Technologies Limited granting the Company (i) the right to form a collaboration entity to further develop ZT?s aforementioned technologies by incorporating Biochar as a carbon input for use in the road infrastructure and construction industry and (ii) the Master Licensing Rights for the USA Territory for ZT?s patented technologies to the Collaboration entity, including Soil Stabilization, Reclaimed Asphalt Pavement (RAP), wearing course materials, concrete, other building material products. This Collaboration aims to generate Carbon Removal Credits through the use of biochar and create new net-zero or carbon net-negative IP products that are higher performing, more durable, sustainable, and cost-effective. These new IPs will be co-owned equally by the Company and ZT.

In consideration of the Collaboration, the Company and ZT will establish a new Special Purpose Vehicle to be equally held by both parties. The SPV will be responsible for executing the new VERDE-ZymTec Net-Zero and Carbon-Negative Technologies and Building Material Products. The Company and ZT will integrate the collaborative activities into the SPV.

The share structure and income split shall be confirmed by the Company and ZT in the final agreement. Subsequently, the Company will apply for an uplift to the Nasdaq stock exchange as part of the final restructuring process. The Collaboration will distribute the royalties, license fees, carbon avoidance credits, and carbon removal credits to the Company and ZT.