CALGARY, AB, May 1, 2023 /CNW/ – EarthRenew Inc. (CSE: ERTH) (OTCQB: VVIVF) (“EarthRenew” or the
“Company”), along with its wholly‐owned subsidiary, Replenish Nutrients Ltd. (“Replenish”), is
announcing a business update and its year‐end and fourth quarter results for 2022.
Business Update
On an annual basis, increased revenues of $5.0 million were thanks to the strong demand and recognition
of the value of our product line. Annual and quarterly net loss was predominantly attributable to a onetime,
non‐cash asset impairment in the fourth quarter ($3.0 million), geopolitical tensions impacting
product input costs, key product research and development costs ($0.3 million), non‐recurring transaction
costs ($0.5 million) related to the equity raise in June 2022, and an untimely weather stoppage on October
24, 2022, due to snowfall. Until this weather stoppage, revenues were trending to the previous annual
guidance of $27 million.
Notably, Replenish has also successfully increased the price per metric tonne to the consumer for its
products due to the innovative formulation, plentiful microbial content and overall soil health benefits.
Peer‐based research through our partners Biome Makers, Neugen Biologicals, and independent field and
small plot trials continued to show proven yield and soil health increases. Additional research and trials
will further support the value‐add proposition of our unique products which we expect to command a
premium price in the market.
Replenish had success this year in patenting its manufacturing process through years of extensive
research, development, and commercialization related to its proprietary and environmentally sustainable
regenerative fertilizer products. Investment in a low carbon, zero‐waste, chemical‐free manufacturing
process is proving fruitful as Replenish moves from pilot‐scale manufacturing to the commissioning of the
commercial‐scale Beiseker facility. Replenish has proven to be a leading player in developing and
commercializing intellectual property in the Agricultural Biotechnology sector. To date, the technology
has been validated through scientific research and experimental development and other government
programs, providing meaningful non‐dilutive funding. Replenish has also recently been selected to
participate in the final round of a low carbon emission funding program that would provide significant
additional non‐dilutive funding.
The continuing development of intellectual property and efficacy confirmation of Replenish products
enable opportunities for future expansion through licensing agreements in new geographies with
strategic partners. In 2022 Replenish increased focus on the core regenerative fertilizer granulation
facilities and will strategically assess non‐core asset sales associated with historical EarthRenew brand and
operations.
While Replenish encountered certain revenue and gross profit headwinds in 2022 based on geopolitical
tensions impacting supply chains, pricing, and timing of fertilizer demand, Replenish continues to have a
clear line of sight to strong demand for its regenerative fertilizer products. Importantly, on a percentage
of revenue basis, Replenish was pleased with its restructuring and cost savings initiatives that resulted in
a marked improvement in operating earnings (loss) percentage and adjusted EBITDA percentage over the
prior year. As supply chain and commodity cycles normalize to historical averages and the Company
realizes additional savings from the full‐year impact of these initiatives in 2023, Replenish is ideally
positioned to realize higher margins and profitability.
Encouragingly, 2023 has already shown fertilizer commodity pricing beginning to return to historical
averages where Replenish realizes higher margins. At the same time, Replenish continues to build
increased resilience into its business model by weighting more of its business towards granulated versus
blended fertilizer production with the commissioning of the Beiseker facility upgrades in the first half of
2023. The additional weighting towards granulated fertilizer will result in increased margins, wider and
larger distribution channels, and lower seasonality impacts on the business.
Financial Highlights
● Annual revenues of $17.3 million compared to $12.3 million in the prior year
● Q4 revenues of $4.4 million compared to $7.7 million in the prior year
● Annual gross profit of $2.2 million and 13% compared to $2.8 million and 25% in the prior year
● Q4 gross profit of $1.3 million and 30% compared to $2.2 million and 29% in the prior year
● Annual net loss of $7.1 million and ($0.06) per share compared to a net loss of $4.7 million and ($0.06)
in the prior year
● Q4 net loss of $3.4 million and ($0.02) per share compared to a net loss of $0.4 million and ($0.00)
per share in the prior year
● Annual adjusted EBITDA1 of ($1.0) million compared to ($0.9) million in the prior year
● Q4 adjusted EBITDA1 of $0.8 million compared to $1.0 million in the prior year
About Replenish Nutrients
Replenish Nutrients is an Agricultural Biotechnology company and a leading intellectual property
developer of regenerative fertilizer solutions and sustainable manufacturing processes to support a farm
system that puts healthy soils and grower profitability back on the table. By combining Canadian‐sourced
nutrients with our proprietary delivery system, Replenish has developed a sustainable alternative to
synthetic fertilizers that enhances overall soil function and biology while providing valuable plantavailable
nutrients farmers rely upon for healthy crops. To learn more about Replenish Nutrients products,
visit our website at www.replenishnutrients.com.
About EarthRenew Inc.
Replenish Nutrients is a wholly‐owned subsidiary of EarthRenew Inc. (CSE: ERTH) (OTCQB: VVIVF).
For additional information, please contact:
Replenish Investor Relations
Email: info@replenishnutrients.com
1 – Adjusted EBITDA is a non‐IFRS financial measure – refer to the Company’s 2022 Management’s Discussion and Analysis for the definition and reconciliation to the nearest IFRS financial measure
Cautionary Note Regarding Forward‐Looking Information
This press release contains “forward‐looking information” within the meaning of applicable Canadian
securities legislation. Forward‐looking information includes, but is not limited to, statements with respect
to financial and operating results. Generally, forward‐looking information can be identified by the use of
forward‐looking terminology such as “will”, “may”, “would”, “should”, “could”, “plans”, “expects”,
“budget”, “schedule”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, and similar
expressions, including variations thereof and negative forms. Forward‐looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those expressed
or implied by such forward‐looking information, including but not limited to: general business, economic,
competitive, geopolitical and social uncertainties; regulatory risks; other risks of the energy and fertilizer
industries and other risk factors disclosed in our public disclosure which can be found under our profile
on SEDAR at www.sedar.com. Readers are cautioned that these risk factors should not be construed as
exhaustive. Although the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward‐looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forwardlooking
information. The Company does not undertake to update any forward‐looking information, except
in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act
and applicable state securities laws or an exemption from such registration is available.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the
policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
