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Highlights
- Replenish closes $1.15 million in debt financing to upgrade Beiseker granulation facility.
- Beiseker facility to reach full operational capacity with 20,000–25,000 metric tonnes of fertilizer annually.
- Financing supports growth, with strong demand already secured for 6,000 metric tonnes.
Replenish Nutrients Holding Corp. (CSE:ERTH; OTC: VVIVF), a leader in regenerative agriculture solutions, is pleased to announce the successful closing of key debt financings totaling $1.15 million. This financing milestone is a critical step in advancing the Company’s Beiseker granulation facility upgrades, enabling it to meet the increasing demand for sustainable fertilizer products as the spring planting season approaches.
Beiseker Facility Positioned for Growth
The $1.15 million financing will facilitate the final upgrades required to achieve full operational capacity at the Beiseker facility. Upon completion, expected by early Q2 2025, the facility will be capable of producing between 20,000 and 25,000 metric tonnes of granulated fertilizer annually. This expansion is well-timed, aligning with the upcoming spring fertilizer season, which is a key revenue-generating period for the business.
Replenish has already secured purchase orders for the first 6,000 metric tonnes of production at an average price of $575 per metric tonne. This represents a strong revenue opportunity, with gross margins anticipated to range between 25%-35%, in line with previous disclosures. Replenish’s existing relationships with long-term customers and distributors provide confidence in the ability to sell the full production capacity of the Beiseker facility, potentially unlocking positive EBITDA and consistent operating cash flow on an annualized basis.
Confidence in Replenish’s Strategic Vision
Neil Wiens, CEO of Replenish, expressed confidence in the Company's future prospects: “This financing underscores the market’s confidence in our innovative regenerative fertilizer products and operational strategy. With the Beiseker facility upgrades nearing completion, we are poised to drive meaningful revenue and margin growth while supporting farmers with sustainable and effective solutions.”
Replenish’s proven track record of successful field trials and strong market acceptance of its products further solidify the Company’s position as a trusted partner in sustainable agriculture, positioning it for continued success in the sector.
Growth Beyond Beiseker
The debt financing not only supports the expansion of the Beiseker facility but also provides momentum for Replenish’s future projects, including the planned DeBolt and Bethune granulation facilities. These initiatives align with Replenish’s mission to scale sustainable agriculture practices and expand its footprint in high-demand agricultural markets across North America.
Financing Details
The $1.15 million debt financing comprises the following components:
- $750,000 Revolving Credit Facility: Interest-only payments, 1-year term (renewable), prime + 12% interest rate, secured by Company assets.
- $250,000 Loan: 10% interest, 18-month term (renewable), secured by Company assets.
- $150,000 Loan: 10% interest, 6-month term (renewable), secured by Company assets.
This strategic financing structure allows Replenish to meet its immediate capital needs while positioning the Company for growth and expansion in the burgeoning regenerative agriculture market.
