Company:Replenish Nutrients
Listings: CSE Canada , Frankfurt and US OTC
Tickers: ERTH / VVIVF / WIMN
Market cap at time of publication: $12.03 MCAD
Stock price at time of publication: $0.075 CAD
Business: Regenerative agriculture
Website: https://replenishnutrients.com/

 

ESGFIRE’s Comment

ESGFIRE today highlighted the strategic importance of Replenish Nutrients Holding Corp.’s newly announced licensing agreement with MJ Ag Solutions. The partnership demonstrates the company’s ability to monetize its proprietary pellet technology without additional capital expenditure, creating a highly cash-flow accretive growth avenue. ESGFIRE believes this deal could materially lift both earnings and valuation while further validating Replenish’s scalable, ESG-driven business model.

Licensing Deal Accelerates Cash Flow

Replenish Nutrients (CSE: ERTH) has signed a licensing agreement with MJ Ag Solutions to produce its pellet fertilizer for northern Alberta farmers. Under the agreement, MJ Ag will manage manufacturing and distribution, while Replenish collects license fees with no capital expenditure required. At full production, the partnership could add up to 800 tonnes per month of new pellet fertilizer output. Management describes this as a “meaningful first step to growing the cash flows” from their pellet business.

Financial Impact – Royalty Model Adds Direct Profit

Based on industry benchmarks, a licensing fee of CAD $50–100 per tonne suggests annual royalties of CAD $480,000 to CAD $960,000 from this single agreement. Because the model is capital-light, nearly all of this revenue should flow directly to the bottom line.

Importantly, Replenish’s Beiseker facility is expected to reach full production shortly, which, based on available figures, should cover all corporate overhead and make the company cash-flow positive. Once achieved, licensing revenues would therefore represent incremental profit. ESGFIRE notes, however, that this expectation carries some risk: delays in ramp-up or higher-than-anticipated costs could postpone full overhead coverage and cash flow breakeven.

Valuation Uplift – Small Deal, Big Effect

Applying a 15× earnings multiple, consistent with ESGFIRE’s premium valuation approach, the incremental CAD $480k–960k in annual profit from this licensing deal equates to a potential CAD $7.0–14.5 million increase in market capitalization.

By comparison, traditional fertilizer producers such as Nutrien, Mosaic, and CF Industries typically trade at 8–12× forward earnings. ESGFIRE believes Replenish merits a premium multiple of ~15× due to its:

-Patented, zero-waste fertilizer production process,

-Capital-light licensing model,

-Strong ESG profile, and

-Higher growth potential relative to mature, commodity-driven peers.

This relative valuation context underlines why even a modest licensing agreement can have an outsized effect on Replenish’s equity value.

Key Takeaways

-The MJ Ag licensing agreement is capital-light and cash-flow accretive.

-Expected annual royalties: CAD $480k–960k.

-Beiseker at full production should cover all overhead and make the company cash-flow positive.

-At a 15× multiple, this deal implies CAD $7.0–14.5M in increased market capitalization.

-Compared to peers at 8–12× earnings, Replenish’s differentiated ESG technology and business model justify a premium valuation.

ESGFIRE’s Outlook – Licensing as a Growth Engine

While this single deal may appear modest in scale, it underscores Replenish’s ability to scale revenues without major investment. Each additional licensing agreement has the potential to compound growth, strengthen cash flows, and reinforce the company’s ESG-driven market positioning. ESGFIRE believes this development provides further evidence that Replenish’s strategy is on track to unlock significant hidden value for shareholders.

 

About ESGFIRE

ESGFIRE is an investment company and research platform focused on companies with environmentally friendly services or products. Since 2018, ESGFIRE has delivered a track record of over 1000% in realized returns across its portfolio. The firm combines active ownership with in-depth research to highlight high-impact businesses in the ESG space and to uncover undervalued opportunities for investors.

Contact
Website: www.esgfire.com
Group CEO: Filip Erhardt
Email: filip@esgfire.com
Telephone: +46 701 609 605

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This post was written by Filip Erhardt, at ESGFIRE, published September 24th by Filip Erhardt.