Replenish Nutrients Reports Second Quarter 2026 Financial Results

OKOTOKS, AB, Aug. 27, 2026 /CNW/ -- Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF) ("Replenish" or the "Company"), is pleased to announce its second quarter 2026 financial results.

Second Quarter 2026 Summary and Outlook

The second quarter of 2026 saw the Company record modest, but directionally important operating results due to the previously announced transition from blended fertilizer to the commercial scale ramp-up in granulated and pellet fertilizer at the Beiseker and Beiseker Hutterite colony facilities. Of note in the second quarter results is the significant increase in granulated sales by more than 1,200 metric tonnes and by more than 1,600 metric tonnes for the 3 and 6 months ended June 30, 2026, compared to the same periods in the prior year. Gross profit margin percentage before other direct costs was below guidance of 25% to 35% in the second quarter due to initial commissioning expenses being spread over less than full capacity production and sales volumes. As the Company transitions to higher granulated and pellet production and sales volumes at Beiseker and Beiseker Hutterite colony and begins to receive licensing fees from the sale of pellet fertilizer, overall revenues, margins, and cash flows are expected to increase. The Company still expects to realize 25%-35% gross profit margin before other direct costs upon reaching full scale production and economies of scale of 2,000 metric tonnes per month at Beiseker and 1,600 metric tonnes per month at Beiseker Colony. The Company also continues to forecast blended fertilizer sales to achieve 10% and 15% gross margin before other direct costs on a run-rate basis going forward.

The Company is in the final stages of commissioning at the Beiseker granulation facility and has begun preparing for 24-hour production runs by hiring additional plant operators and expects to be capable of the full 2,000 metric tonne production capacity in the fourth quarter of 2026. Alongside the final commissioning of the Beiseker facility, and as previously announced in the first quarter of 2026, the Company has partnered with the Beiseker Hutterite colony to produce the Company's patented pellet fertilizer in a facility at the Beiseker Hutterite colony. This facility is now expected to produce approximately 1,600 metric tonnes of pellet fertilizer per month (up from 1,000 metric tonnes forecasted previously) based on the addition of a second pelletizer. The partnership with the Beiseker Hutterite colony represents a meaningful inroad to future production facilities at other Hutterite colonies in Canada. The Company expects initial production and sales to occur in the fourth quarter of 2026 and expects the same 25%-35% gross profit margins before other direct costs as the granulated fertilizer products.

The second quarter also saw significant progress on the Company's two licensing deals with Farmers Union and MJ Ag, with both partners achieving additional construction and commissioning milestones. The Company expects both licensing deals to begin initial commissioning production in the fourth quarter of 2026, and scaling to the annualized production capacities of 50,000 and 10,000 metric tonnes, respectively, by the end of 2026.

Alongside the commissioning of the Farmers Union facility, the Company continues to build out further sales distribution channels in the U.S. Midwest and is also expected to share the results of the extensive field trials conducted with notable U.S. Midwest universities in the coming months. These field trials build on Replenish's deep history of proven product efficacy and real-world, on-farm results compared to conventional fertilizer products.

Subsequent to quarter end, the Company closed a $15 million strategic financing with SRC Agrominerals, as previously disclosed on July 23 and August 20, 2026. This financing accelerates Replenish's organic growth plan by unlocking additional working capital for the Company's existing owned and licensed facilities and is also expected to provide the funding necessary to complete a 150,000 metric tonne expansion of the Company's patented pellet fertilizer at the Beiseker facility.

CEO Commentary

"Our second quarter results reflect exactly where we expected to be in this transition," said Neil Wiens, CEO of Replenish Nutrients. "We are deliberately shifting our production mix toward higher-margin granulated and pelletized fertilizer, and the progress we made at Beiseker and Beiseker Colony this quarter - including the added pelletizer that increases our planned pellet capacity to 1,600 metric tonnes per month – is directionally important and keeps us on track for full-scale production at both facilities in the fourth quarter of 2026. Combined with the continued momentum on our Farmers Union and MJ Ag licensing agreements and the $15 million financing with SRC Agrominerals we announced subsequent to quarter end, we believe Replenish is well positioned to scale production, improve margins, and strengthen our balance sheet as we move through the back half of 2026 and into 2027."

Second Quarter 2026 Financial Highlights

	3 Months		6 Months
Period ending June 30	2026	2025	2026	2025
Revenue	978,300	1,474,329	1,395,587	1,875,899
Gross profit	(175,891)	96,041	(412,282)	170,852
Gross profit %	-18 %	7 %	-30 %	9 %
Selling, general and administration	666,250	556,292	1,250,515	1,181,798
Operating earnings (loss)	(1,137,679)	(989,711)	(2,255,504)	(2,079,402)
Other (income) expense	431,946	328,829	1,141,775	437,289
Net earnings (loss)	(1,569,625)	(1,301,540)	(3,397,279)	(2,516,691)
Net earnings (loss) per share – basic and diluted	(0.01)	(0.01)	(0.02)	(0.02)
Funds from (used-in) operations	(812,067)	(437,327)	(1,630,707)	(976,512)
Changes in non-cash working capital	420,215	(840,521)	385,025	(153,334)
Cash from (used-in) operating activities	(391,852)	(1,277,848)	(1,245,682)	(1,129,846)
Consolidated adjusted EBITDA^1	(842,141)	(460,251)	(1,662,797)	(1,010,946)

¹These are non-IFRS financial and operational measures – refer to Non-IFRS Financial and Operational Measures section in the MD&A

• Revenues decreased $0.5 million for the 3 and 6 months compared to the same periods in the prior year. The decrease is due lower sales of blended fertilizer, partially offset by increased sales of granulated fertilizer and higher power revenues. The decrease is blended fertilizer sales was expected based on the Company's previous guidance that it would be transitioning towards full commercializing of granulated and pellet fertilizer. Increased power revenues were due to higher average power pool pricing compared to the same periods in the prior year.
• Gross profit decreased $0.3 million and $0.6 million for the 3 and 6 months compared to the same periods in the prior year. The decrease was due to the expected transition to full-scale commercial operations for granulated and pellet fertilizer at the Beiseker and Beiseker Hutterite colony facilities, and incurring additional ramp-up costs as Beiseker and Beiseker Hutterite colony progress towards full-scale operations. This decrease was partially offset by higher gross profit from the power segment due to higher average power pool pricing compared to the cost of natural gas.
• Net loss increased $0.3 million and $0.9 million for the 3 and 6 months compared to the same periods in the prior year. The increased loss is primarily due to lower gross profit margins, higher finance costs and a non-cash unrealized loss on financial assets.
• Cash flows used-in operating activities decreased $0.9 million and increased $0.1 million for the 3 and 6 months compared to the same periods in the prior year. The decreased use of cash for the 3 months was due to higher sources of cash from changes in working capital, while the increased use of cash for the 6 months due primarily to lower operating margins, partially offset by increased cash from changes in working capital.

Conference Call Reminder

Replenish CEO Neil Wiens, CFO Matthew Greenberg, and Chairman Tim Close will host a live webinar at 6:00 PM ET on Thursday, August 27, 2026, to review the Company's financial results followed by a live question-and-answer session.

Replenish welcomes shareholders, analysts, investors, media representatives, and other stakeholders to attend our upcoming webinar to discuss second quarter fiscal 2026 results.

Conference Call Registration

Date: Thursday, August 27, 2026
Time: 6:00 PM ET
Link: https://us02web.zoom.us/webinar/register/WN_TLN9nCmURU2v_WlHb5lQBw#/registration

About Replenish Nutrients

Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF) manufactures and sells proprietary fertilizer products containing essential macro and micro nutrients and biological material while using a proprietary zero-waste manufacturing process. To learn more about Replenish visit our website at www.replenishnutrients.com.

For additional information, please contact:

Replenish Nutrients Investor Relations
Email: [email protected]

Sophic Capital
Sean Peasgood
Email: [email protected]

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 regarding: expected production volumes, unit economics, and timelines at the Beiseker granulation facility, including the targeted production rate of 2,000 metric tonnes per month and the commencement of 24-hour production runs, and the Company's expectation of achieving full-scale production capacity in the fourth quarter of 2026; the expected production capacity of approximately 1,600 metric tonnes per month at the pellet facility located at the Beiseker Hutterite colony (up from the previously forecasted 1,000 metric tonnes per month) following the addition of a second pelletizer, the anticipated timing of initial production and sales in the fourth quarter of 2026, and the potential for future large-scale pellet production and distribution across additional Hutterite colonies; expected gross margins on granulated fertilizer (25%–35% before other direct costs), pellet fertilizer (25%–35% before other direct costs), and blended fertilizer (10%–15% before other direct costs); the anticipated timing of initial commissioning production and the scaling to annualized production capacities of approximately 50,000 and 10,000 metric tonnes at the Farmers Union and MJ Ag licensed facilities, respectively, by the end of 2026; the Company's plans to expand sales distribution channels in the U.S. Midwest and to share the results of field trials conducted with U.S. Midwest universities; the use of proceeds, and anticipated benefits of the $15 million financing with SRC Agrominerals, including the unlocking of additional working capital and the funding of a planned 150,000 metric tonne expansion of the Company's patented pellet fertilizer production capacity at the Beiseker facility; the anticipated timing for completion of the expansion at the Beiseker facility, the expected annual production capacity and gross margins thereof; the Company's expectation that overall revenues, margins, and cash flows will increase as it completes its transition to higher-margin granulated and pellet fertilizer production and begins receiving licensing fees; and the Company's expectations regarding its liquidity and capital resources.

Forward-looking information is based on the beliefs, estimates, and opinions of management as of the date such statements are made and involves a number of assumptions, including, but not limited to: the successful and timely completion of commissioning and scale-up activities at the Beiseker facility, the Beiseker Hutterite colony pellet facility, and the Farmers Union and MJ Ag licensed facilities; the Company's ability to achieve targeted production volumes and unit economics; the satisfactory performance of licensing partners Farmers Union and MJ Ag and of the Beiseker Hutterite colony; sustained fertilizer market pricing and demand conditions; the Company's ability to obtain sufficient financing on acceptable terms to fund operations and growth initiatives; Alberta power pool pricing; and the continued availability of key inputs, contractors, and regulatory approvals.

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: risks associated with commissioning and ramping up new production facilities, including the risk that targeted production volumes, timelines, or unit economics at Beiseker, the Beiseker Hutterite colony facility, or the licensed facilities are not achieved; risks that the Company's transition to higher-margin granulated and pelletized fertilizer products does not achieve anticipated results; risks that licensing partners or the Beiseker Hutterite colony do not perform as anticipated, or that construction and commissioning is delayed; risks that gross margins do not achieve anticipated levels; risks that the planned 150,000 metric tonne Beiseker expansion is n not completed on the anticipated terms or timing, or that anticipated benefits are not realized; risks related to fertilizer commodity pricing; risks related to Alberta power pool pricing; risks related to the Company's ability to raise additional capital and to maintain or expand its credit facilities; general business, economic, competitive, geopolitical, and social uncertainties; regulatory risks; and the other risk factors disclosed in the Company's public disclosure, which can be found under the Company's profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned that the foregoing list of risk factors is not 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 forward-looking information. The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

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.

SOURCE Replenish Nutrients Holding Corp.