Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) announced it has closed debt financings totaling $1.15 million to support upgrades to the company’s Beiseker granulation facility ahead of the key spring planting season.
The financing will allow the Beiseker facility to reach full operational capacity, with an expected annual production of between 20,000 and 25,000 metric tonnes of granulated fertilizer.
Upgrades are scheduled for completion by early Q2 2025, Replenish said, in time for the peak spring fertilizer season.
Replenish has already secured purchase orders for 6,000 metric tonnes of the facility’s first production batch, priced at an average of $575 per metric tonne.
The company expects strong gross margins between 25% to 35%, in line with previous financial guidance.
Replenish told investors it anticipates selling the full capacity of the facility, leading to positive EBITDA and solid operating cash flow on an annualized basis.
"This financing underscores the market's confidence in our innovative regenerative fertilizer products and operational strategy," Neil Wiens, Replenish CEO said in a statement.
"With Beiseker's upgrades nearing completion, we are poised to drive meaningful revenue and margin growth while supporting farmers with sustainable and effective solutions."
Beyond Beiseker, the financing will also provide momentum for the company’s broader growth strategy, including the planned DeBolt and Bethune granulation facilities.
The $1.15 million debt financing is structured through a $750,000 revolving credit facility, which features interest-only payments, a renewable one-year term, and a prime + 12% interest rate, secured by the company’s assets. Additionally, the financing includes a $250,000 loan with a 10% interest rate, an 18-month term, and a $150,000 loan with a 10% interest rate and a 6-month term, both renewable.
As part of the financing arrangement, Replenish issued 3,125,000 share purchase warrants at a conversion price of $0.08, set to expire in January 2027.