Listings: CSE Canada , Frankfurt and US OTC
Tickers: ERTH / VVIVF / WIMN
Market cap at time of publication: $8.51MCAD
Stock price at time of publication: $0.06 CAD
Business: Regenerative agriculture
We were positively surprised by the Q3 report published on November 29th 2023 as the third quarter for 2023 showed healthy revenues and margins and even positive operating cash flow. This was made despite the fact that the company had higher cost inventory carried from the previous year.
ESGFIRE is especially encouraged by the following comment made by the company
“As the average cost of inventory continues to drop and the Company continues to ramp up granulated production at the Beiseker facility and realize the full-year impact of its ongoing cost savings initiatives, there is strong line of sight to positive adjusted EBITDA and operating cash flow going forward. ”
Replenish also updated on the latest development of the $7 million dollar non-dilutive government grant from Emissions Reductions Alberta (ERA). Replenish is submitting follow‐up project documentation on an ongoing basis to the ERA. As previously stated by the company , the finalization of the grant is “subject to ERA’s financing conditions including due diligence procedures and execution of a final grant contribution agreement.” ESGFIRE expects to receive an update from the company on the finalization of the grant status and financing of the Debolt facility before the end of 2023.
There was also positive news on the product development front which revealed that there may be a new market opportunity in the higher margin retail market for Replenish products.
We were also positively encouraged by the statement of the company moving into the fourth quarter of 2023:
“Strong sales volumes, robust gross margins and favourable weather have been realized so far in the fourth quarter, with sales volumes already surpassing third quarter sales volumes. The Company has moved through higher cost inventory, which will lead to higher realized margins going forward.”
Replenish Nutrients is still the largest position of the ESGFIRE portfolio and we remain positive of the company’s future development.
ESGFIRE is an investment company and research firm that focuses on ESG companies with either an environmentally friendly service or product. ESGFIRE has a performance record of over 1000 % returns since 2018.
This post is based upon reliable sources, namely regulated press releases from the company, as referred to above. Nevertheless, this post may contain interpretations, estimates, or opinions of the authors, or other non-factual information. If that is the case, this is continuously stated above. Furthermore, any projections, forecasts, or similar are explicitly stated as such.
The author holds shares and/or other securities of these companies and the relevant
companies may or may not have paid the author for content posted on this website. This
may impact the content on the website. Because of the above, ESG Fire urges the visitors to always analyze all the posts critically in an objective manner, e.g., concerning the reliability of the relevant source and of what constitutes the authors’ personal interpretations. The visitor is hereby reminded that the post does, as set forth in the Post, contain interpretations, estimates, or opinions of the authors. This post was written by Filip Erhardt, at ESGFIRE, published on Decemebr 5th , 2023.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for educational purposes only and are not to be interpreted as tips, financial advice or recommendations of any kind to either buy or sell any stocks.