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FinanceReplenish Nutrients Secures $15M Strategic Investment and Carbonatite Supply Deal
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Replenish Nutrients Holding Corp has secured a $15 million strategic investment from SRC Agrominerals to expand its Beiseker fertilizer facility in Alberta and lock in a long-term supply of carbonatite, a mineral-rich input for its regenerative fertilizer products. The investment consists of $7.5 million through the purchase of 50 million units at $0.15 per unit, giving SRC an initial 19.9% stake, and a further $7.5 million via a senior secured convertible debenture bearing 10% annual interest. Proceeds will fund a new 150,000 metric tonne pelletizing facility expected to be completed in Q1 2028 with gross margins of 25% to 35%. As part of the deal, Replenish and SRC entered a 10-year supply agreement for carbonatite. SRC CEO Tim Close will join Replenish's board, and David Morris will serve as a board advisor. Closing of the equity investment is expected by July 24, with the debenture closing by mid-August.
Source report
Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) has secured a $15 million strategic investment from SRC Agrominerals. The funding will support the expansion of its Beiseker fertilizer facility and secure a long-term supply of carbonatite, a mineral-rich input used in the company's regenerative fertilizer products.
Investment Structure
The agreement includes two components:
- Equity Investment ($7.5 million): SRC will purchase 50 million units at $0.15 per unit, representing an initial 19.9% stake in Replenish on a non-diluted basis. Each unit includes one common share and half of a warrant. Each whole warrant is exercisable at $0.225 for four years, subject to acceleration if shares trade at or above $0.28 for 20 consecutive trading days.
- Convertible Debenture ($7.5 million): A senior secured convertible debenture bearing 10% annual interest, payable quarterly in cash or shares at Replenish's election. The debenture matures in four years and converts at $0.225 per share.
Use of Funds
Proceeds will finance a new 150,000 metric tonne pelletizing facility at Replenish's existing Beiseker site in Alberta, along with additional storage, load-out, and processing infrastructure. The expansion is expected to be completed in the first quarter of 2028 and is projected to generate gross margins of 25% to 35%.
Supply Agreement
Replenish and SRC will enter a 10-year supply agreement, under which Replenish will purchase a minimum annual quantity of carbonatite—a resource rich in calcium, phosphorus, and trace minerals used for soil enhancement. Initial payment terms include $1 million upon execution of the agreement.
Leadership Changes
- Tim Close, CEO of SRC, will join Replenish's board of directors following the closing of the equity investment. Close previously led Ag Growth International for a decade, during which the company's revenue grew fivefold.
- David Morris, founder and former chairman of Morris Group Canada, will join as a board advisor and will be nominated as a director at Replenish's next annual shareholder meeting.
Executive Commentary
"This strategic relationship marks a pivotal step in Replenish's growth strategy. SRC's investment gives us the capital to accelerate our Beiseker pelletizing expansion, while our new supply agreement gives Replenish access to a key input for our regenerative fertilizer platform." — Neil Wiens, CEO, Replenish Nutrients
"Replenish has built a capital-efficient, scalable platform for regenerative fertilizer production, and this investment reflects our confidence in their team and their growth trajectory." — Tim Close, CEO, SRC Agrominerals
Timeline
- Equity investment closing: Expected by July 24, 2026
- Debenture investment closing: Expected by mid-August 2026
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Source
Yahoo FinanceWestern
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Replenish Nutrients Secures $15 Million Strategic Investment and Carbonatite Supply Deal