Verde Investment Highlights slide image

Verde Investment Highlights

Superior to Other Bio-Resins Across Critical Industry Requirements : Best-in-Class / Superior : Limited / Lacking : Inferior / Not Meet Requirement 1. Environmental PolyEarthylene TLGY Green PLA PHA PE Bio-Based Content >90%(1) >80% >80% >84% Landfill Biodegradable 2. Cost 3. Manufacturing/ Processing Compostable Cost Efficiency Processing Temperature Film / Extrusion Injection Molding 4. Applications Blow Molding Thermoforming ✓ (2) * - $1.50 $1.80 per lb. $1.80 $2.30 per lb. $2.70-$3.20 per lb. - $1.80 $2.00 per lb. 330°-425° 330 - 390 300° - 350° ✓ Heat Sensitive Modification Needed 330° - 425° ✓ Heat Sensitive ✓ Heat Sensitive Modification Needed ■Durable packaging Consumer products ■Beauty product packaging Automotive Heat Sensitive Mostly limited to: Film and bags Modification Needed Mostly limited to: Food Packaging Mostly limited to: Fibers Plastic Bags ttt = ⋅ Verde's proprietary technology enables PolyEarthylene TM to be operated in standard manufacturing processes where other bio-polymers cannot or will not work properly. • Most bio-resins lack the mechanical properties required for durable goods production. Among the most widely-used bioplastics today, only PLA and PHA have an acceptable end-of-life solution and only when used without stabilizers and other commonly used ingredients that impact degradation. However, PLA is temperature sensitive and may break down during manufacturing, and is also not landfill biodegradable. PHA exhibits some disadvantages including a lower strain-at-break, a narrower processing window, a slower crystallization rate, and a higher cost compared to both bio-based and petroleum-based polymers. • Verde's technology takes a different product development approach compared to other eco-friendly polymer companies. While other companies develop a product and then try to find an application for its use, Verde develops an eco-friendly offset or alternative to the current material being used. Source: Verde/Expert Interviews, TLGY analysis Note: 1. 2. Percentage of bio-based content will vary per PolyEarthyleneTM grade and based on customer requirements but will in no event be less than 51% biobased. PolyEarthylene™M passes biodegradation testing in an industrial composting facility pursuant to ASTM D5338, representing 96.5% effective biodegradation in 6 months, which is a key element in D6400 testing (pending). Additional landfill biodegradation testing underway pursuant to ASTM D5511 standard. Verde 11
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