$40M Reg A+ Deal Aims to Increase Brazil’s Potash Production

About Brazil Potash

Brazil Potash is a mineral exploration and development company with a potash mining project located in the state of Amazonas. Although Brazil Potash is in the pre-revenue development stage and has not yet commenced any mining operations, its future operating activities, once commenced, will be focused on the extraction and processing of potash ore from its underground mine and selling and distributing the processed potash in Brazil.

Potash is one of the three main nutrients used to grow food. Its primary role is to strengthen the stem of a plant to make it more robust to drought, temperature swings, and insect bites all of which are becoming more prevalent. 

Brazil Potash aims to become a significant domestic source of potash fertilizer in Brazil to alleviate Brazil’s dependence on imported potash and farmer supply-chain risk while supporting economic prosperity and agricultural sustainability in Brazil and food security globally.

The process of creating this fertilizer begins with the extraction of potassium ore from deep underground. The ore is then transported to the surface for processing and when complete, it’s applied by farmers to grow food completing the cycle from the earth back to earth. Using this process, once it has obtained all regulatory approvals, Brazil Potash anticipates providing high-quality fertilizer to Brazilian farmers who supply essential food worldwide creating food security, which is a step towards solving the second UN Sustainable Development Goal.

To further finance its pre-operation activities, Brazil Potash raised $40 million via Equity Crowdfunding pursuant to an offering under Tier 2 of Regulation A. 

Self-hosting the capital raise on DealMaker was one of the key elements to making this raise possible, with over thousands of investors in multiple jurisdictions.

Building a Self-Sufficient Brazil

Brazil is one of the world's leading producers of agricultural goods. Consequently, Brazil is a key market for potash producers, since, in order to increase the volume and value of crop yields, frequent and balanced replenishment of nutrients in the soil is needed. Potash is integral to Brazil’s economic success since Brazil generates approximately 27% of its gross domestic product from the agricultural sector. 

However, Brazil is heavily reliant on imported potash and imports approximately 95% of its potash needs. Brazil Potash believes that Brazil’s government recognizes that reliance on imported potash is not a tenable long-term solution and that Brazil needs to find ways to increase its domestic production of potassium-bearing fertilizers (Potash). 

Brazil Potash had to find a capital-raising solution that would allow them to raise a significant sum to advance the project. DealMaker was the capital-raising platform of choice to kick off this large-scale food security project. Our technology and expertise were instrumental in assisting Brazil Potash to secure the financing they needed. 

Why Brazil Potash Chose DealMaker

DealMaker announced the successful close of Brazil Potash's Reg A+ deal, raising about $40 million from thousands of investors in multiple jurisdictions. This achievement underscores DealMaker's position as a leading provider of digital capital raise technology, regulatory compliance, and deal management solutions for the global securities industry. 

“Once we knew that we would raise capital via a Reg A+, the decision to go with DealMaker was easy. Their platform allowed us to focus on our project advancement goals and not have leadership mindshare bogged down trying to manage thousands of subscription agreements in multiple jurisdictions for the capital raise.” Matt Simpson, CEO, Brazil Potash Corp.

Raising substantial capital globally primarily from retail investors is relatively new, and AML and KYC are difficult when dealing with multiple jurisdictions. DealMaker has a 92% KYC pass rate, higher than other portal averages (typically around 70-80%). This example of a global Reg A+ raise is a step towards creating a single global capital market.

How DealMaker Responded 

Our powerful platform made it easy for investors to search and manipulate data to quickly access all the vital information about Brazil Potash, including key metrics such as producer peer valuations and deal size. The streamlined process helped Brazil Potash reach their capital-raising goals.

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Working with our reputable and experienced team is an essential component when trying to raise capital for your business in multiple jurisdictions. Our tech allows for a seamless investor experience, gives you the deep analytics and insights to drive and optimize investor behavior, and our superior payments ensure your deal has a maximized conversion rate.

Interested in learning more about how our capital raising solution can help you grow and empower your own investors? Get in touch.

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