Replenish Nutrients: Beiseker Hutterite Pellet Commissioning Sets a Capital-Light Template the Market Hasn't Priced

Executive Summary

• Replenish Nutrients has completed the commissioning of its patented pellet facility at the Beiseker Hutterite colony, transitioning unit economics from theoretical to proven with a 29% gross margin achieved in Q1 2026.
• The 1,000 tpm facility is guided to maintain a 25-35% margin profile, projecting ~CAD 6.6-7.8M in annual revenue and ~CAD 1.7-2.7M in annual gross profit at full run-rate.
• Management frames this as a replicable template for scaling across other Hutterite colonies in Canada and the U.S., complemented by licensing agreements with FUE and MJ Ag that could add ~60,000 tonnes of royalty-bearing capacity.

Key Details

• Facility Commissioning: Patented pellet facility at the Beiseker Hutterite colony officially commissioned.
• Capacity & Production: ~1,000 tonnes per month (tpm) at full run-rate (~12,000 tonnes per year); core Beiseker granulation plant scaling toward 2,000 tpm (~24,000 tpy) with expected move to full 24/7 production shortly.
• Margin Performance: Delivered 29% gross margin in Q1 2026; pellet facility guided to 25-35% margin profile.
• Pricing: Disclosed pricing for the Hutterite Colony is approximately CAD 550-650 per tonne.
• Single-Facility Financials: Full run-rate expected to generate ~CAD 6.6-7.8M in annual revenue and ~CAD 1.7-2.7M in annual gross profit (before other direct costs).
• Scaling Thesis: Partnership structured as a template for replication across other Hutterite colonies, which collectively manage ~4 million acres across North America (~1.7 million acres in Alberta alone).
• Total Owned Platform Capacity: ~36,000 tonnes per year once all known owned facilities are operational (2,000 tpm Beiseker granulation line + 1,000 tpm colony pellet line).
• Licensing Agreements: Signed facilities include FUE in Minnesota (50,000 tpy, scalable to 100,000 tpy) and MJ Ag in the Peace Country (10,000 tpy), adding ~60,000 tonnes of royalty-bearing capacity at minimal incremental capital.
• Total Platform Capacity (Owned + Licensing): ~96,000 tonnes per year currently known, scaling toward ~146,000 tpy as FUE ramps.
• Aggregate Financial Model (All Facilities at Capacity): Estimated annual run-rate revenue of ~CAD 22-27M; gross profit ~CAD 7-11M; steady-state EBITDA broadly in the CAD 4-7M range after corporate cost base.
• Royalty Structure: Estimated ~$40-60 per tonne licensing royalty at high margins.
• Production Timeline: Q3 2026 expected to mark the convergence of four discrete revenue streams (full Beiseker capacity, colony pellet line, FUE, and MJ Ag).
• Market Context: Company market cap ~$25M CAD; stock price $0.125 CAD at time of publication.