Replenish Nutrients receives US$7.5 million from SRC Agrominerals

Strategic investment

As a result of the equity investment, SRC has taken an initial 19.9% interest (non-diluted) in Replenish. Net proceeds from the equity investment will be used to fund the Beiseker Pelletisation Expansion, working capital, inventory purchases, debt repayment, and general corporate purposes. All securities issued are subject to a statutory hold period of four months plus one day from the date of issuance.

Investor rights and board appointments

Concurrent with the closing of the equity investment, the company has entered into an investor rights agreement with SRC. Pursuant to the investor rights agreement, SRC has the right to nominate one director to Replenish's board (increasing to two directors following closing of the debenture investment) and has been granted participation rights to maintain its pro-rata ownership.

In connection with the equity investment, SRC's CEO, Tim Close, will be appointed to the board of directors of Replenish. Close brings significant leadership and expertise across capital markets, corporate strategy, operational execution and commercial governance. Mr. Close previously served as CEO of Ag Growth International (AGI), a large, publicly traded global leader in storage, handling and blending equipment for the fertilizer, seed, grain and food-processing sectors. During his 10-year tenure, Close led AGI's transformation from a regional provider of grain-handling equipment into a global leader in food infrastructure, with revenue growing fivefold during that span. He built and led a high-performing team, strengthened operational execution and advanced the company's global growth strategy, including overseeing the deployment of more than US$700 million of capital across 19 strategic transactions.

Dr David Morris, Director of SRC, will also join the Replenish board as an advisor and will be put forward as a director at Replenish's next annual shareholder meeting. Dr Morris is the founder and former Chairman of Morris Group Canada Inc., which provided innovative solutions for the construction and resource sectors across Canada and South America, including modular construction, workforce housing, site services, labour management, and safety training. Dr. Morris brings deep operational expertise at a time when Replenish is moving into significant operational and commercial expansion.

Supply agreement

Replenish has entered into a 10-year supply agreement with SRC for the supply and delivery of carbonatite, a calcium, phosphorus, trace-mineral and microbial-rich resource used for its soil-enhancing properties. Carbonatite is a carbonate-rich igneous rock formed from volcanic activity. The Spanish River deposit is distinguished by high concentrations of loosely bonded calcium, phosphorus, potassium, and magnesium, along with trace rare earth elements, and notably without radioactive or toxic heavy metals found in many other carbonatite deposits.

Read the article online at: https://www.worldfertilizer.com/project-news/24072026/replenish-nutrients-receives-us75-million-from-src-agrominerals/