- EarthRenew (ERTH) intends to acquire an approximate 38 per cent interest in Replenish Nutrients
- Replenish is a regenerative fertilizer and nutrient formulation and marketing company
- The transaction will provide access to regenerative agriculture markets in Western Canada and the United States
- The acquisition is anticipated to close on or before February 15, 2021
- EarthRenew is trading at C$0.38 per share
EarthRenew (ERTH) is considering a stake in agricultural marketing company Replenish Nutrients.
The company says it plans on acquiring around 38 per cent of Replenish, a leader in the crop inputs and soil solution sector.
EarthRenew signed a non-binding letter of intent on December 11, 2020. The company says the acquisition will allow it to “offer a suite of soil health solution growth assets.”
EarthRenew will also use the expertise offered by Replenish to support its marketing and distribution strategy, providing access to regenerative agriculture markets in Western Canada and the United States, chiefly in North Dakota and Montana.
The Replenish Nutrients team will also support the engineering and operations of EarthRenew’s flagship Strathmore facility The deal is also expected to grow EarthRenew’s customer base.
“We are extremely excited to announce the signing of the LOI and the proposed acquisition of Replenish Nutrients,” said EarthRenew CEO Keith Driver.
“Replenish Nutrients has a broad customer list with an appetite for soil solutions. Sharing that list is anticipated to allow us to quickly open new sales channels following closing. We look forward to the potential of having Replenish Nutrients’ management team join EarthRenew in an enhanced operational capacity,” he added.
The proposed acquisition is anticipated to close on or before February 15, 2021. Replenish is a privately held regenerative fertilizer, nutrient formulation and marketing company located in Okotoks, Alberta.
Headquartered in Calgary, Alberta, EarthRenew transforms livestock waste into an organic fertiliser used by organic and traditional growers in Canada and the United States. Its flagship plant is located on a 25,000-head cattle feedlot in Strathmore, Alberta.
Shares of EarthRenew are trading at $0.38 per share at 11:30am EST.
