Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) announced that it is finalizing upgrades to its Beiseker granulation facility in Alberta, which will bring the plant to full operational capacity of 20,000 to 25,000 metric tonnes of granulated fertilizer annually.
With completion expected in late Q2 or early Q3 2025, this expansion positions the company to meet growing demand from long-standing customers and distributors, Replenish said in a statement on Wednesday.
To support these upgrades and bolster working capital, Replenish has secured $2.7 million in financing, including a $2.5 million revolving credit facility and a $200,000 receivable factoring loan.
The company also intends to complete a non-brokered private placement of up to $1 million, including a debt settlement component to convert up to $590,000 of trade payables into equity.
"This financing underscores the market's confidence in our innovative regenerative fertilizer products and operational strategy," Replenish CEO Neil Wiens said.
"With Beiseker's upgrades nearing completion, we are poised to drive meaningful revenue and margin growth while supporting farmers with sustainable and effective solutions."
Strong margins
With secured purchase orders for the first 6,000 metric tonnes at an average price of $575 per ton, Replenish expects strong gross margins of 25% to 35%, in line with prior projections.
Achieving full production at Beiseker will generate positive EBITDA and cash flow, paving the way for future expansion at its planned DeBolt and Bethune granulation facilities.
The offering and debt settlement are expected to close on April 17, subject to regulatory approval.