EarthRenew (CSE: ERTH) has officially closed the acquisition of Replenish Nutrients. Announced last night, the closing of the transaction marks a significant milestone for the company.
The closing of the transaction enhances the distribution significantly of EarthRenew’s products. Currently operating at an annualized run rate of $9.9 million in revenues, the transaction also significantly bolsters the topline revenue of EarthRenew, while growing its customer base.
Under the terms of the definitive agreement, EarthRenew acquired Replenish for a total figure of $9.0 million, consisting of both cash and shares. A total of $1.41 million was paid in the form of cash, while the remainder was paid in the form of common shares. A portion of the consideration was also utilized to settle $2.8 million in outstanding loans owed by Replenish.
“We are very pleased to be able to announce the close of this transaction and to move forward with our ambitious plans to grow our newly combined entity. It is the beginning of a new phase for EarthRenew where we plan to significantly scale our production capacity by 10X by expanding by product, volume and geography and transitioning to a cashflow positive business.”
Keith Driver, CEO of EarthRenew
Earn out arrangements are also applicable, with up to $7.0 million in consideration to be paid out based on performance targets through to June 30, 2025.
Sponsored · Silver47 Exploration Inc.
EarthRenew last traded at $0.34 on the CSE.
FULL DISCLOSURE: EarthRenew Inc is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover EarthRenew Inc on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
