Replenish Nutrients gets $15M SRC investment for new facility

Replenish Nutrients (CSE: ERTH, OTC: VVIVF) has announced a proposed $15 million strategic investment from SRC Agrominerals, which would fund a 150,000 metric tonne pelletizing facility at the company's existing Beiseker, Alberta property, targeted for completion in Q1 2028.

Under the terms of the transaction, SRC would acquire an initial 19.9% non-diluted equity interest in Replenish and two board seats. The deal includes 50 million units priced at $0.15 CAD, 25 million warrants at $0.225 CAD, and a $7.5 million debenture convertible at $0.225 CAD. The company's stock closed at $0.165 CAD prior to the announcement.

The two companies also plan to enter a ten-year supply agreement for Spanish River Carbonatite, with Replenish committing to minimum annual volumes. SRC's carbonatite product holds OMRI and ProCert certification for organic use.

The proposed facility would add to Replenish's existing owned capacity of approximately 36,000 tonnes annually across its Beiseker granulation and colony pellet lines, alongside 110,000 tonnes of licensed capacity at facilities in Minnesota and through MJ Ag partnerships. The $15 million is designated for the facility as well as working capital, inventory, debt repayment, and general corporate purposes.

Two individuals are expected to join the board upon closing. Tim Close, former CEO of Ag Growth International, and Dr. David Morris, who brings construction and project-execution experience, are named as the incoming directors.

The potential share issuance from the transaction totals approximately 108 million shares, including the units, warrants, and debenture conversion, against an estimated pre-transaction share base of approximately 201 million.

Replenish Nutrients operates in regenerative agriculture, producing mineral-based fertilizers. The press release was published by ESGFIRE, a Swedish investment research firm whose CEO disclosed holding shares in the company and noted the company may have paid for the content.

You May Also Be Interested In

• Nth Cycle files draft S-4 for SPAC merger at $585M enterprise value
• Nielsen to acquire DoubleVerify in merger deal
• Millrose Properties commits $1.25B to back Dream Finders-Beazer deal