Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) told investors it advanced several key initiatives in the third quarter, including major new licensing agreements in the US Midwest and Northern Alberta and continued progress toward full production at its Beiseker facility.
The company said these developments support its plan to scale regenerative fertilizer production and expand technology-driven revenue streams across North America.
A standout achievement from the quarter was a new licensing agreement with Farmers Union Enterprises (FUE), granting rights to deploy the company’s fertilizer technology across a five-state, 100-million-acre agricultural region in the US Midwest.
FUE will fund the construction of a 50,000 to 100,000-ton facility, while Replenish provides proprietary formulas, transitional product, operational support and working-capital financing. The company expects to earn US$40 to US$60 per ton from volumes sold under the partnership.
In Canada, Replenish finalized a previously announced licensing agreement with MJ Ag Solutions covering the 10-million-acre Peace Country region.
MJ Ag will build and fund a roughly 10,000-ton facility, with Replenish supplying formulas, product support and working-capital financing. Replenish projects earning C$40 to C$60 per ton on volumes sold through the partnership.
The company also reported that its Beiseker facility achieved hourly production rates of 4 to 5 tons per hour and entered the final commissioning phase.
Replenish said this performance supports its target of producing about 2,000 tons per month once load-out upgrades are completed and 24-hour shifts are fully implemented.
For Q3, Replenish’s financial results were impacted by lower seasonal fertilizer sales volumes and segment-specific impacts.
Revenue declined by $100,000 in the quarter from the year-ago period, while gross profit fell by $200,000, with margins affected by lower power pricing, carbon tax impacts earlier in the year and third-quarter maintenance in the power segment.
Net loss increased by $3.2 million in the quarter, largely reflecting the absence of a one-time non-cash gain recorded in the prior year.
Cash used in operating activities rose by $500,000, driven by working-capital changes.
Replenish said it expects revenue and margin improvements in the fourth quarter, supported by a mix of granulated and blended fertilizer sales and the return to normal operations in its power segment.