09:03 AM EDT, 04/09/2025 (MT Newswires) -- Verde Agritech ( VNPKF ) said Wednesday it agreed to sell magnetic rare earths exploration assets in Brazil to Nautica Holdings.

Verde will receive 2 billion shares in Nautica priced at $0.01 apiece. Upon deal close, Nautica will oversee these assets as the top-hat public company with about 2,240,000,000 shares on issue.

Post-completion, Nautica will propose a share consolidation on a 1 for 45 basis and intends to rename itself Oby Critical Minerals.

Nautica also plans to launch an IPO on the ASX, and is evaluating potential listings in New York as well as other options including a direct asset sale.

"This strategic transaction enables Verde to realize value for its shareholders and positions Nautica as a significant player in the rare earths sector, capitalizing on increasing global demand for critical minerals," Verde said.

Verde's share price fell 6.8% on Tuesday to $0.55 on the TSX.