Replenish Nutrients lands $15M, 10-year supply pact

Replenish Nutrients Holding Corp has secured a $15 million strategic investment from SRC Agrominerals, coupled with a 10-year supply agreement that locks down a critical mineral input for its fertilizer products. The transaction combines equity and debt financing to fund a significant production expansion in Alberta.

SRC will acquire a 19.9% non-diluted stake in Replenish through the purchase of 50 million units at $0.15 each. Each unit consists of one common share and half a warrant, with full warrants exercisable at $0.225 over four years. Those warrants are subject to acceleration if the stock trades at or above $0.28 for 20 consecutive days.

The remaining $7.5 million will be injected via a senior secured convertible debenture carrying a 10% annual interest rate. Interest is payable quarterly in either cash or shares at Replenish's discretion. The debenture matures in four years and features a conversion price of $0.225 per share.

The capital will finance a new 150,000 metric tonne pelletizing facility at Replenish's existing Beiseker site. The project includes additional storage, processing and load-out infrastructure, with completion targeted for the first quarter of 2028. Management projects the expanded capacity will generate gross margins between 25% and 35%.

Alongside the financing, the companies entered a 10-year offtake agreement for carbonatite, a mineral-rich material used to enhance soil health. Replenish will purchase a minimum annual quantity of the resource, which provides calcium, phosphorus and trace minerals. The deal requires an initial $1 million payment upon execution, removing supply chain volatility for the company's core platform.

The partnership also brings seasoned industry executives to Replenish's boardroom. SRC CEO Tim Close, who previously spent a decade leading Ag Growth International through a period of fivefold revenue growth, will join the board upon the equity closing. David Morris, founder and former chairman of Morris Group Canada, will join as a board advisor and is nominated for a director seat at the next annual meeting.

Close noted that 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." The equity investment is expected to close by July 24, with the debenture following by mid-August.