KUALA LUMPUR: Borneo Oil Bhd (BornOil)'s associated company Verde Resources Incorporated (Verde) continues ascending to new heights with its share price closing at 24 cents on the United States' OTCQB market on 20 January 2021.
The BornOil group had, in May 2020, received 166.67 million shares in Verde due to a purchase and sale agreement concerning assets and intellectual property rights for catalytic biofraction green technologies.
This means that BornOil's shareholding, at Verde's price of 24 cents, is valued at US$40 million (approximately RM168 million) or some 83 per cent of BornOil's market capitalisation of RM202 million today.
Nevada-based Verde intends to emerge as a global renewable energy player in the conversion of palm oil waste products to biomass, biochar, biogas, biofuel and wood vinegar.
Its president Balakrishnan Muthu reportedly said that the company plans to invest heavily in research and development as it believes that palm oil biomass waste could be monetised with the right processes and technologies.
Late last year, Verde had introduced two regenerative agriculture products for smart and sustainable farming which promises to increase yields, healthier crop growth, and carbon sequestration to help mitigate climate change.
The Verde Enriched BioChar is a resourceful soil amendment that improves soil pH, reduces erosion, improves water retention, provides a host for microbial activity and, most importantly, has the ability to sequester large amounts of carbon.
Meanwhile, Verde Wood Vinegar is a breakthrough organic pesticide and fertilizer that also improves soil quality.
It helps with the elimination of pests and assists in the healthy growth of plants and crops.
Both products are currently available through Shopee and Lazada.
When combined, both these products revitalise soil for increased productivity, better biological activity, and provide moisture and nutrient retention.
They also enhance soil resulting in carbon sequestration, microbial biomass and provide a conducive environment for mycorrhizae.
On the BornOil front, executive director Datuk Joseph Ambrose Lee emerged as its largest shareholder in December 2021.
Ambrose has been progressively increasing his personal stake in BornOil every few days since early-September 2021, with his latest purchase being on 21 January 2021.
He currently owns close to a twenty per cent stake in BornOil.
His optimism for BornOil's strong prospects stems from the company being on a solid foundation.
"BornOil has a solid asset base. Its net tangible asset is RM0.11 per share with total assets of RM824 million against total liabilities of just RM56 million," Joseph reportedly said.
"BornOil is lowly geared with just under RM20 million of short term and long term borrowings with a comfortable cash position.
"What's more, it also has a long term growth strategy and business philosophy of sustainable existence."
For the financial year 2021, BornOil posted a net profit of RM28.51 million and a net profit of RM3.79 for the first quarter (Q1) of 2022.
With the rise in Verde's share price, 2022 could potentially turn out to be a record-breaking year for BornOil.