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Replenish Nutrients Secures C$15 Million Strategic Investment From SRC Agrominerals

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Replenish Nutrients (ERTH.CN) has struck a C$15 million financing deal with SRC Agrominerals that will give SRC an initial 19.9% non-diluted equity stake in the company.

Its shares jumped 15% to C$0.19 in mid-morning trading.

The parties will also enter into a long-term agreement for SRC to supply carbonatite, a resource used for its soil-enhancing properties, to Replenish, according to a statement.

SRC will subscribe for 50 million units of the company at C$0.15 each, generating gross proceeds of C$7.5 million. Each unit will consist of one common share and one-half of a four-year warrant exercisable at C$0.225 per share.

SRC will also purchase a C$7.5 million senior secured second-lien convertible debenture carrying annual interest of 10%. The debenture will mature four years after closing and will be convertible into common shares at C$0.225 apiece.

The financing proceeds will support the construction of a separate 150,000-metric-tonne pelletizing facility at Replenish's existing Beiseker property, as well as additional storage, load-out and processing infrastructure.

As part of the investment, SRC Chief Executive Tim Close will be appointed to Replenish's board. Close previously served as chief executive of Ag Growth International (AFN.TO). David Morris, an SRC director, will also join the Replenish board.

Replenish shares were last seen up C$0.025 to C$0.19, on the Canadian Securities Exchange.

Price: $0.19, Change: $+0.03, Percent Change: +15.15%

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