Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) announced the closing of a new licensing deal and the introduction of a new proprietary fertilizer product.
The agriculture bioscience company said the initial licensing deal will see Replenish's partner manage the manufacturing process with both parties contributing to sales efforts.
The licensing agreement will not require Replenish to outlay any capital expenditures, with the working capital obligations being shared by both parties.
Replenish Nutrients noted that the first full production runs are expected to begin in the coming weeks with product being ready to sell in the upcoming fall fertilizer season.
It added that production volume is expected to increase up to 800 metric tonnes per month supplementing the existing volumes being produced at the Beiseker granulation facility.
As well, Replenish Nutrients reported that it expects to supplement its existing sales of blended and granulated product this fall with the addition of a new proprietary pellet fertilizer product line under a new licensing agreement with MJ Ag Solutions Ltd, an Alberta-based fertilizer distributor.
Replenish said the pellet products align with its existing product portfolio and deliver equivalent soil health benefits to its blended and granulated offerings, while reducing production costs and simplifying the manufacturing process relative to granulation.
"By partnering with MJ Ag Solutions Ltd, we are positioned to generate a new, recurring revenue stream that requires no additional shareholder capital," Replenish Nutrients CEO Neil Wiens said in a statement.
"The potential to replicate this structure not only across North America but also in other markets gives us what we view as a compelling long-term growth opportunity."
The company also stated that it intends to pursue additional licensing agreements with partners in other regions, including potential opportunities outside of North America, as part of its strategy.