Regenerative agricultural fertilizer firm Replenish Nutrients Holding Corp. announced on Monday that it has entered into a C$15 million strategic investment agreement with SRC Agrominerals. This investment will fund the construction of a new 150,000-ton-per-year granulation production facility at the company's existing Beiseker site in Alberta. The project is expected to increase the company's proprietary production capacity from the current 36,000 tons to 186,000 tons, representing a more than fivefold increase.

Under the terms of the agreement, SRC will subscribe for 50 million units at a price of C$0.15 per unit, acquiring a 19.9% non-dilutive equity stake in Replenish and securing two seats on the board of directors. SRC CEO Tim Close will join the board; he previously served as CEO of Ag Growth International for a decade, during which the company's revenue grew fivefold. Additionally, SRC will provide a C$7.5 million senior secured convertible debenture, carrying a 10% annual interest rate and a conversion price of C$0.225 per share.

As part of the transaction, the two parties signed a ten-year carbonatite supply agreement, ensuring Replenish's access to the critical mineral raw materials required for producing its regenerative fertilizers, which are organically certified. Neil Wiens, CEO of Replenish, stated, "SRC's investment funds our Beiseker expansion, the supply agreement secures key feedstock, and the operational and capital markets expertise they bring will be instrumental as we scale the company."

Currently, Replenish operates two proprietary facilities: the Beiseker granulation plant with an annual capacity of 24,000 tons and the colony granulation plant with an annual capacity of 12,000 tons. Furthermore, the company holds 110,000 tons of licensed capacity through tolling agreements in Minnesota and Alberta. The new facility is anticipated to be completed in the first quarter of 2028.