Brazil Potash Announces Launch of Brazilian Depositary Receipts (BDRs) on B3 Exchange

Rhea-AI Summary

Brazil Potash (NYSE-American: GRO) has announced the launch of its Brazilian Depositary Receipts (BDRs) on Brazil's main stock exchange, B3, trading under the symbol GROP31 starting May 26, 2025. The BDRs will represent a 1:1 ratio of common shares, complementing the company's existing NYSE American listing.

This strategic move allows Brazilian investors direct access to invest in the Autazes Potash Project in Amazonas state, aligning with Brazil's National Fertilizer Plan to reduce fertilizer import dependence from 85% to 45% by 2050. Banco Bradesco S.A. will serve as the depositary institution for the Level I BDR program, which aims to enhance visibility in both North American and Brazilian markets while improving liquidity.

Positive

• Launch of BDRs provides access to new investor base in Brazil
• Strategic alignment with Brazil's National Fertilizer Plan
• Dual listing enhances market visibility and potential liquidity
• Project addresses critical vulnerability in Brazil's agricultural supply chain

Negative

• None.

Insights

Financial Markets Specialist

Brazil Potash's new BDR listing on Brazil's B3 exchange creates strategic market access and aligns with national resource independence goals.

Brazil Potash's launch of Brazilian Depositary Receipts (BDRs) on the B3 exchange represents a strategic financial expansion that connects Brazilian capital markets directly to the company's domestic potash development efforts. The 1:1 BDRs (trading under GROP31) will complement the existing NYSE American listing (GRO), creating a dual-market presence that should enhance liquidity and visibility across North and South American financial markets.

This listing has particular strategic significance beyond typical financial engineering. Brazil currently imports 85% of its potash, creating a critical vulnerability for the world's largest net agricultural exporter. The Autazes Project in Amazonas state directly addresses a national security priority as outlined in Brazil's National Fertilizer Plan, which aims to reduce import dependence to 45% by 2050.

The BDR structure elegantly solves several strategic challenges: it maintains the company's access to North American capital while opening ownership to domestic Brazilian investors who understand the agricultural sector's importance. This alignment between investor base and operational impact often results in more stable, long-term shareholding patterns.

From a market perspective, this dual-listing approach should improve overall trading volumes and potentially reduce share price volatility. The involvement of Banco Bradesco, one of Brazil's largest financial institutions, as the depositary institution adds credibility to the offering. The Sponsored Level I BDR structure provides essential regulatory oversight while maintaining listing flexibility.

• BDRs will provide Brazilian investors direct access to invest in the largest domestic potash development project
• Strategic step to expand investor base in Brazil, aligning with National Fertilizer Plan's goal of reducing import dependence
• Trading on B3 complements existing NYSE American listing (GRO)
  

MANAUS, Brazil, May 27, 2025 (GLOBE NEWSWIRE) -- Brazil Potash Corp. ("Brazil Potash" or the "Company") (NYSE-American: GRO), a mineral exploration and development company with a critical mineral potash mining project, the Autazes Project, today announced the successful launch of its Brazilian Depositary Receipts (BDRs) on the B3 S.A. – Brasil, Bolsa, Balcão ("B3"), Brazil's main stock exchange. The BDRs have been approved for listing on B3 and will begin trading on May 26, 2025 under the ticker symbol GROP31.

The BDR program will allow Brazilian investors to directly participate in the ownership of Brazil Potash, which is developing the strategic Autazes Potash Project in Amazonas state. This domestic investment opportunity aligns with Brazil's National Fertilizer Plan, which aims to reduce the country's dependence on fertilizer imports from 85% to 45% by 2050.

"We're proud to offer this investment opportunity to the Brazilian market, where the impact of our project will be directly felt," said Matt Simpson, Chief Executive Officer of Brazil Potash. "Our company was created to address a critical vulnerability in Brazil's agricultural supply chain. Now, through the BDR program, Brazilian investors can participate in building domestic potash capacity that will support the country's position as the world's largest net exporter of agricultural products."

The BDRs will be backed by Brazil Potash's common shares, which will continue to trade on the NYSE American exchange under the ticker symbol "GRO." Each BDR will represent 1:1 of a common share of the Company. This dual listing approach enhances the Company's visibility in both North American and Brazilian capital markets, improving liquidity and broadening the investor base.

Banco Bradesco S.A. will serve as the depositary institution for the BDR program. The BDRs are being issued as Sponsored Level I BDRs, governed by CVM Instruction 332, CVM Instruction 480, and the B3 Issuers Regulation and Manual.

About Brazil Potash

Brazil Potash (NYSE-American: GRO) (www.brazilpotash.com) is developing the Autazes Project to supply sustainable fertilizers to one of the world’s largest agricultural exporters. Brazil is critical for global food security as the country has amongst the highest amounts of fresh water, arable land, and an ideal climate for year-round crop growth, but it is vulnerable as it imported over 95% of its potash fertilizer in 2021, despite having what is anticipated to be one of the world’s largest undeveloped potash basins in its own backyard. The potash produced will be transported primarily using low-cost river barges on an inland river system in partnership with Amaggi (www.amaggi.com.br), one of Brazil’s largest farmers and logistical operators of agricultural products. With an initial planned annual potash production of up to 2.4 million tons per year, Brazil Potash’s management believes it could potentially supply approximately 20% of the current potash demand in Brazil. Management anticipates 100% of Brazil Potash’s production will be sold domestically to reduce Brazil’s reliance on potash imports while concurrently mitigating approximately 1.4 million tons per year of GHG emissions.

Forward-Looking Statements Disclaimer

All statements, other than statements of historical fact, contained in this press release constitute "forward-looking statements" and are based on the reasonable expectations, estimates and projections of the Company as of the date of this press release. The words "plans," "expects," or "does not expect," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "does not anticipate," or "believes," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will be taken," "occur" or "be achieved" and similar expressions identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding the trading of BDRs on B3; the potential benefits of the BDRs or the Autazes Project, the status of the Company's project, government regulation and environmental regulation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact:
Brazil Potash Investor Relations
info@brazilpotash.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7c1a5f9f-83cc-441e-a8ce-447f106781e7

FAQ

What is the ticker symbol for Brazil Potash's BDRs on the B3 exchange?

Brazil Potash's BDRs will trade under the ticker symbol GROP31 on the B3 exchange.

What is the conversion ratio for Brazil Potash's BDRs to common shares?

Each BDR represents a 1:1 ratio of Brazil Potash's common shares.

When will Brazil Potash's BDRs begin trading on the B3 exchange?

The BDRs will begin trading on May 26, 2025.

Who is the depositary institution for Brazil Potash's BDR program?

Banco Bradesco S.A. serves as the depositary institution for the BDR program.

How does Brazil Potash's BDR listing align with Brazil's National Fertilizer Plan?

The BDR listing supports Brazil's goal to reduce fertilizer import dependence from 85% to 45% by 2050 by enabling domestic investment in local potash production.