EarthRenew Enters LOI For First Facility In The USA
EarthRenew Inc (CSE: ERTH) is in the process of expanding its presence in the western US marketplace. The company this morning revealed that it has signed a non-binding letter of intent with Diamond Feeders for the development of the firms first facility in the country.
The LOI entered by the two firms contemplates the development of a new facility at Diamond Feeders feedlot located in Colorado. If developed, the facility will see the annual production of 40,000 tonnes per year of EarthRenew’s organic fertilizer pellets in conjunction with Diamond Feeders’ 50,000 head feedlot located in the state.
The development would be in an ideal strategic location, given the proximity to the southwestern United States and the strong demand for organic farming in the region. The proposed facility is twice the capacity of the firms current facility located in Alberta, and provides further benefits given the acquisition of Replenish Nutrients. Upon closing, the facility would also be able to serve as a strategic hub for the blending and granulation of Replenish’s product lines.
“This new facility could potentially produce over 40,000 tonnes of our organic fertilizer pellets per year and will help us grow our line of products, which provides us with a tremendous opportunity to serve the vast United States market. Additionally, if we are successful at the Colorado Site, there is potential for future expansion to other United States locations owned by Diamond Feeders.”
Keith Driver, CEO of EarthRenew
The letter of intent signed between the two parties outlines terms of the lease and related shared services of the new facility, as well as outlines feedstock fees and delivery, as well as co-marketing of products, as well as terms for the potential sale of electricity generated on site to Diamond Feeders. Financial aspects of the transaction were not revealed.
Once binding agreements are signed, the company anticipates a 12-month window to permit, design, and construct the facility for blending and granulation, and a further twelve months to permit, design and construct a production facility.
EarthRenew last traded at $0.425 on the CSE.
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