Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) earlier this week outlined how its strategic relationship with Spanish River Carbonatite (SRC) could support a significant production scale-up, with CEO Neil Wiens saying the company has reached an operational “inflection point”.
Wiens told Proactive that the relationship initially developed through Replenish Nutrients evaluating Spanish River Carbonatite as an ingredient in its products. He said the material demonstrated strong efficacy when incorporated into the company’s blends, leading to discussions about securing greater and more consistent supply.
Following due diligence, SRC made a sizable strategic investment in Replenish Nutrients, while SRC CEO Tim Close has become chairman of the company.
Close described SRC’s northern Ontario carbonatite resource as a naturally occurring blend containing calcium, potassium, phosphate and magnesium, together with trace and micronutrients and beneficial microbes.
He said Replenish Nutrients’ production capabilities, distribution network and relationships throughout the agricultural supply chain had been important attractions for SRC. Close added that the respective products represented an “ideal fit”, with benefits from combining SRC’s material with Replenish Nutrients’ products.
The partnership comes as Replenish Nutrients ramps up production at several operations. Close said the immediate priority was a “laser focus on execution”, with the company effectively working on commissioning “three, four plants all at once”.
A key potential catalyst highlighted during the interview was the planned expansion at Beiseker. Close said SRC’s investment facilitates an additional 150,000-ton expansion at the operation.
Wiens said having Close and SRC involved at this stage provided additional expertise and allowed management to devote greater time to operations, sales and execution as Replenish Nutrients works to complete its scale-up.
He described the current stage as the inflection point the company had been discussing over the previous two years.
Wiens also highlighted the potential agricultural benefits of combining the products, particularly in providing more balanced nutrition. He said the addition of calcium complemented the company’s existing approach and expressed hope that customer returns would continue to improve as adoption increased.
For investors, the principal developments to watch following the interview are execution of the simultaneous production ramp-up, progress on the proposed 150,000-ton Beiseker expansion, integration of SRC material into Replenish Nutrients’ offering and the company’s ability to translate increased production capacity into greater product adoption.
