Highlights:
- EarthRenew advances its growth strategy into the United States through the signing of a non-binding letter of intent with Diamond Feeders, the owner of a 50,000 head feedlot in Colorado.
- The new site is projected to provide EarthRenew with strategic access to the southwestern United States, one of the largest organic markets in the world.
- The new site is being designed to produce over 40,000 tonnes of finished product per year and can serve as a blending and granulation facility to meet United States demand.
- Once binding agreements are signed, we anticipate it will take approximately 12 months to permit, design and construct the blending and granulation facility, and a further 12 months to permit, design and construct the EarthRenew production facility.
- We continue to scout additional United States sites to support a broader growth plan for EarthRenew’s product lines.
TORONTO, March 02, 2021 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE: ERTH; OTCQB: VVIVF) (“EarthRenew” or the “Company”) is pleased to announce that, further to its press release dated August 19, 2020, it has signed a non-binding letter of intent (the “LOI”) with Diamond Feeders, LLC (“Diamond Feeders”) for the potential development of EarthRenew’s first facility in the United States (the “Colorado Site”). EarthRenew previously completed a feasibility study on the Colorado Site in December 2020. If constructed, the new facility will be located on Diamond Feeders’ large feedlot in the western United States, which finishes over 50,000 head of cattle per year and could provide ample feedstock.
We anticipate that the Colorado Site could be a strategic operational location, as it is in close proximity to the southwestern United States, one of the world’s largest organic farming markets. Once constructed, we estimate that the facility at the Colorado Site could produce 40,000 tonnes per year of our organic fertilizer pellets for distribution to markets in the southwestern United States, which is twice the capacity of our existing Strathmore, Alberta facility. In addition to the potential direct financial benefits of producing product at the Colorado Site, we anticipate that, following completion of our acquisition (the “Acquisition”) of Replenish Nutrients Ltd. (“Replenish”), the facility could also serve as a strategic United States hub for the blending and granulation of the Replenish’s product line. For more information about the Acquisition, please see the Company’s press release dated February 18, 2021, which is available here or on the Company’s profiles at www.sedar.com and www.theCSE.com. Completion of the Acquisition remains subject to several closing conditions, including the execution of a definitive agreement.
Pursuant to the terms of the LOI, EarthRenew anticipates signing a binding long-term lease with Diamond Feeders for the Colorado Site so that it can proceed to complete permitting and engineering activities. Key terms of the LOI include: terms of the lease and shared services for the Colorado Facility, parameters for feedstock fees and delivery and co-marketing of end-products, and terms for potential electricity sales to Diamond Feeders to meet its on-site demands.
“We are incredibly excited to sign the LOI and to move forward with binding agreements for our first United States facility. Diamond Feeders is aligned with our sustainability goals and looks forward to us providing them a solution to their manure disposal concerns,” said EarthRenew’s CEO, Keith Driver. Mr. Driver continued, “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.”
Diamond Feeders is an arm’s length party to EarthRenew. Construction of a new facility at the Colorado Site remains subject to several conditions including, without limitation, execution of definitive agreements with Diamond Feeders, including a long-term lease agreement and agreements respecting shared services, feedstock delivery, co-marketing and electricity sales (collectively, the “Definitive Agreements”), completion of permitting and engineering activities, and EarthRenew entering into construction contracts. There can be no guarantees that the necessary permits will be obtained, that the Definitive Agreements and construction contracts will be entered into or that the new facility will be constructed.
