Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) earlier this week announced a licensing agreement with US-based Farmers Union Enterprises. The deal marks a significant move for the company as it extends operations into the US.
The company said the Farmers Union group represents around 70 million acres of cropland across Minnesota, Montana, North Dakota, South Dakota and Wisconsin. It added that the group has existed for 95 years and operates as one of the largest cooperatives in the region.
The agreement includes the construction of a localized fertilizer facility. Replenish Nutrients told investors that the plant is currently under development and is expected to be operational by early summer. The plant will produce regenerative fertilizer containing soil biology, which aligns with the company’s environmental approach.
CEO Neil Wiens said the partnership validates the company’s licensing and royalty business model. “The fertilizer industry is 100% about logistics. If you can make stuff that's close by all the farmers, it makes a good deal.”
Wiens also noted the strategic importance of the location. He highlighted that the facility is being built in the Red River Valley, an area he described as “probably the most fertile place in North America.”
The company said the Farmers Union’s broader national presence may assist in further expansion. It stated that the union is part of a wider US network and is already discussing future facility developments based on market needs.
Wiens added that this new deal also demonstrates the strength and viability of the company’s intellectual property. “It's not just a bunch of fluff that we're talking about. We're physically making something that works,” he said.
Replenish Nutrients said the new partnership would reduce transportation costs and improve efficiency. It confirmed that all fertilizer will be made and used locally.
The company said it expects to benefit from increased visibility across the US agriculture sector and is optimistic about future opportunities.