Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) announced it has upsized its previously disclosed non-brokered private placement to gross proceeds of up to $4.2 million from $3 million, citing additional investor demand, and has closed the first tranche of the offering.
The company reported first tranche gross cash proceeds of approximately $919,000 and said it also settled about $125,000 in debt owed to certain trade creditors.
Under the first tranche, Replenish issued about 8.7 million units at $0.12 per unit. Each unit consists of one common share and one common share purchase warrant, with each whole warrant exercisable to acquire one common share at $0.18 for a period of two years from the issue date.
In connection with the first tranche, the company paid about $31,000 in finder’s fees and issued 120,400 finder’s warrants, each exercisable at $0.18 for 24 months.
The company said it plans, as part of the second tranche, to settle certain debts owed to directors and trade creditors in exchange for units.
The proceeds from the offering are expected to support working capital requirements related to previously announced licensing deals with MJ Ag Solutions and Farmers Union Enterprises, as well as working capital for Beiseker and general corporate purposes, including strategic marketing and investor relations.
"We are very pleased with the strong level of interest in this financing and the continued support from both new and existing investors,” Replenish CEO Neil Weins said in a statement.
“We believe this reflects growing confidence in our regenerative agriculture platform and our commitment to improving soil health through innovative, sustainable fertilizer solutions. This support provides important momentum as we advance our licensing initiatives and scale production."
Closing of the second tranche is anticipated on or about March 11.
Separately, Replenish said it continues to work through regulatory and CSE approvals related to its previously announced $1.95 million strategic investment from Sorbie Bornholm LP.