Replenish Nutrients secures licensing deal with MJ Ag Solutions Ltd

As Replenish Nutrients prepares for a busy fall fertilizer season, in addition to ramping up granulated fertilizer production at Beiseker, the company has announced that it expects to supplement its existing sales of blended and granulated product this fall with the addition of a new proprietary pellet fertilizer product line under a new licensing agreement with MJ Ag Solutions Ltd, a Northern Alberta-based fertilizer distributor.

Licensing deal

The initial licensing deal will see Replenish Nutrients' partner manage the manufacturing process with both parties contributing to sales efforts. The terms of the licensing agreement do not require Replenish Nutrients to outlay any capital expenditures with the working capital obligations being shared by both parties. The first full production runs are expected to commence in the coming weeks with product being ready to sell in the busy upcoming fall fertilizer season. Production volume is expected to increase up to 800 tpm supplementing the existing volumes being produced at the Beiseker granulation facility. Replenish is encouraged this will provide a meaningful first step to growing the cash flows from this licensing deal and the new pellet fertilizer business going forward.

Proprietary pellet fertilizer

The pellet products align with the company's existing product portfolio and deliver equivalent soil health benefits to its blended and granulated offerings, while reducing production costs and simplifying the manufacturing process relative to granulation. Importantly, the pelletised products do not require any specialised spreading equipment and can be readily used by the existing equipment many growers already have on their farms. Similar to Replenish Nutrients’ granulated product, the pellet product can also be readily and safely stored in bins and transported at scale by truck and rail. These product features result in a lower total cost of applied fertilizer to the grower while also providing scalability and strong margins for Replenish and its current and future licensing partners.

Strategic significance

Management believes this licensing agreement demonstrates the scalability of Replenish Nutrients' pelletisation technology and provides a capital-light path to potential growth. The company intends to pursue additional licensing agreements with partners in other regions, including potential opportunities outside of North America, as part of its strategy.

Neil Wiens, Replenish Nutrients CEO, said: "We believe this agreement marks an exciting milestone for Replenish and a strong validation of our licensing model. By partnering with MJ Ag Solutions Ltd, we are positioned to generate a new, recurring revenue stream that requires no additional shareholder capital. The potential to replicate this structure not only across North America but also in other markets gives us what we view as a compelling long-term growth opportunity. This agreement is more than a single facility; it represents a model that we believe can transform how our technology scales in the market. We are enthusiastic about the opportunities ahead and confident in our ability to build long-term value for both farmers and shareholders."

Read the article online at: https://www.worldfertilizer.com/project-news/26092025/replenish-nutrients-secures-licensing-deal-with-mj-ag-solutions-ltd/