Key Takeaways
- Replenish Nutrients Holding Corp. has entered a $15 million strategic investment agreement with SRC Agrominerals, split between a $7.5 million equity investment and a $7.5 million convertible debenture.
- SRC will take an initial 19.9% non-diluted equity stake in Replenish through 50 million units priced at $0.15 each.
- Proceeds will fund a new 150,000 metric tonne pelletizing facility at Replenish's existing Beiseker, Alberta site, expected to be completed in the first quarter of 2028.
- The companies will also enter a 10-year supply agreement for carbonatite, a calcium- and phosphorus-rich mineral SRC will provide for Replenish's regenerative fertilizer products.
- Tim Close, CEO of SRC Agrominerals, will join Replenish's board of directors, and Dr. David Morris, founder of Morris Group Canada, will join as a board advisor.
Replenish Nutrients Announces Strategic Relationship With SRC Agrominerals
Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF) has entered into a securities purchase agreement with SRC Agrominerals under which SRC will invest a combined $15 million in the Okotoks, Alberta-based fertilizer manufacturer. The agreement includes a $7.5 million equity investment and a $7.5 million convertible debenture, alongside a separate supply agreement.
Under the equity portion, SRC will subscribe for 50 million units at $0.15 per unit, giving it an initial 19.9% non-diluted stake in the company. The debenture carries a fixed 10% annual interest rate, matures in four years, and is convertible into common shares at $0.225 per share.
“This strategic relationship marks a pivotal step in Replenish's growth strategy,” said Neil Wiens, CEO of Replenish Nutrients. “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. Beyond the capital, we're gaining a strategic partner in Tim, David and the SRC team, whose operational and capital markets experience will be a significant asset to Replenish as we scale.”
Beiseker Facility Expansion
Proceeds from the investment will help fund a new 150,000 metric tonne pelletizing facility at Replenish's existing Beiseker granulation site, expected to be completed in the first quarter of 2028.
Carbonatite Supply Agreement
Replenish and SRC will also sign a 10-year supply agreement covering carbonatite, a calcium- and phosphorus-rich mineral mined from SRC's Spanish River deposit near Sudbury, Ontario. Replenish has agreed to purchase a minimum annual quantity and to incorporate the mineral into its fertilizer products.
“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,” said Tim Close, CEO of SRC Agrominerals. “Pairing Replenish's manufacturing and distribution capabilities with SRC's carbonatite reserves creates a compelling opportunity to bring the proven soil health benefits of Spanish River Carbonatite to growers across North America. I look forward to joining the Replenish board and supporting the Company through its next phase of growth.”
Board Changes at Replenish Nutrients
As part of the agreement, Tim Close will join Replenish's board of directors, while Dr. David Morris, founder of Morris Group Canada, will join as a board advisor and be nominated as a director at the company's next annual meeting. Closing of the equity investment is expected around July 24, 2026, with the debenture investment expected to close around August 14, 2026.
