VERDE RESOURCES, INC. 8-K

What Happened
VERDE RESOURCES, Inc. (through its subsidiary Verde Renewables) announced on July 1, 2026 that it entered a Master Commercialization and Collaboration Agreement (MCCA) with Ergon Asphalt & Emulsions, Inc. Under the MCCA, Verde Renewables will be Ergon’s preferred supplier of engineered biochar and will manage carbon removal credits for products that incorporate the biochar. The parties’ initial project (Project #1) targets a cold‑mix road paving product as the first “Ergon‑Verde Product”; Project #1 is expected to commence immediately and run over the next several years while the Initial Product is piloted and commercialized.

Key Details

• MCCA effective July 1, 2026 with an initial 10‑year term, automatically renewing for five years unless timely terminated.
• Verde Renewables will supply biochar, provide technical/field support, and manage carbon removal credits (registration, methodology, verification, registry management, and sales); Verde will pay Ergon a percentage of net proceeds of Verde’s share of biochar carbon removal credits.
• For Project #1, Ergon and Verde will share net revenue from biochar sales to Ergon’s customers and Ergon will pay Verde a cash royalty per gallon of emulsion product sold in connection with Project #1.
• Amendment to prior Supply Agreement with Biochar Solutions LLC (dated June 30, 2026): initial annual supply up to 38,500 U.S. tons (subject to increase), biochar to be white‑labeled for Verde, and joint U.S./international patent filing for the Designer‑Blend Char (rights owned equally).

Why It Matters
This agreement creates multiple potential commercial avenues identified in the filing: (1) biochar product sales as a preferred vendor to a large asphalt supplier, (2) royalty income per gallon for the Initial Product, and (3) shared proceeds from carbon removal credits tied to Ergon‑Verde products. The supply amendment with Biochar Solutions addresses manufacturing capacity (up to 38,500 tons initially) and establishes joint IP protection for the Designer‑Blend Char formulation. Investors should note the contract term (10 years plus renewal), the immediate start of Project #1, and a termination clause allowing Ergon to end the MCCA with 60 days’ notice if the Company’s CEO (Jack Wong) or COO (Eric Bava) are terminated (except for cause), all as disclosed in the 8‑K and accompanying exhibits.