Replenish Nutrients recaps 2025 work

Mr. Neil Wiens reports REPLENISH NUTRIENTS PROVIDES 2025 YEAR-IN-REVIEW AND 2026 OUTLOOK Replenish Nutrients Holding Corp. has highlighted key progress made on its 2025 operational, financial and strategic initiatives, alongside an outlook for 2026 as the company transitions into full-scale commercial production and licensing-driven growth. 2025 year in review: from development to scalable commercial platform During 2025, Replenish executed against a clear set of priorities focused on completing facility upgrades, strengthening its balance sheet and establishing a scalable, capital-efficient licensing growth model. Beiseker granulation facility -- commissioning and production milestones: Substantially completed construction, automation, and commissioning activities at the Beiseker granulation facility; Achieved key operational milestones, including sustained hourly production rates of four to five metric tonnes per hour, validating the facility's ability to reach targeted output of approximately 2,000 metric tonnes per month once final conveyance, loadout systems, and 24-hour operations are fully implemented; Transitioned Beiseker from development and commissioning toward steady-state commercial operations, positioning the facility to deliver the highest granulated production and sales volumes in the company's history. Commercial progress and product portfolio expansion: Maintained strong repeat demand for Replenish's blended and granulated fertilizer products across Western Canada and select U.S. markets; Introduced a new patented and proprietary pellet fertilizer product, expanding the company's addressable market and lowering manufacturing complexity and cost relative to granulation; Continued to demonstrate the operational flexibility of Replenish's technology across blended, granulated and pelletized fertilizer product formats; Launched Replenish 1, the company's flagship retail lawn and garden granulated fertilizer product, and began initial distribution across Western Canada. Capital-light licensing strategy takes shape In 2025, Replenish made significant progress executing its licensing-driven growth strategy: MJ Ag Solutions licensing agreement (Northern Alberta and British Columbia): The company entered into a licensing arrangement with MJ Ag Solutions to manufacture and distribute Replenish's pellet fertilizer products across the 10-million-acre Peace Country agriculture region. Under the agreement, MJ Ag will finance all capital expenditures and operate a production facility with initial capacity of 10,000 metric tonnes per year, while Replenish supplies proprietary formulas, technical support and transitional working capital financing. Replenish expects to earn $40 to $60 per metric tonne on volumes sold under this partnership. Farmers Union Enterprises (FUE) licensing agreement (U.S. Midwest): The company signed a licensing agreement with Farmers Union, providing Replenish with access to a five-state U.S. Midwest region representing over 100 million acres of arable land with 70 million acres controlled by Farmers Union members. Under the agreement, FUE will finance all capital expenditures and operate a production facility with initial capacity of 50,000 metric tonnes per year, scalable to 100,000 metric tonnes, while Replenish supplies proprietary formulas, technical support and transitional working capital financing. Replenish expects to earn $40 (U.S.) to $60 (U.S.) per metric tonne on volumes sold under this partnership. Together, these agreements validate Replenish's technology platform and demonstrate the company's ability to scale production and market reach without significant incremental capital investment. Industry leadership, policy engagement and thought leadership: In February, 2025, Replenish's chief executive officer participated as a panel member at Canza's Seeding New Ground event, contributing to the national dialogue on regenerative agriculture practices. This engagement helped inform Canza's subsequent Million Acre Challenge, announced in the fall of 2025, which promotes and supports the adoption of regenerative agriculture across Canada. In September, 2025, Replenish hosted its own Soil Health Conference, bringing together growers, distributors, academic and soil-health researchers, and key financial and policy stakeholders. Participants included the Alberta Minister of Agriculture and Irrigation, R.J. Sigurdson, Agriculture Financial Services Corp. (AFSC), ATB Financial, Canza, and educational and research bodies from across Alberta. These initiatives reinforced Replenish's role as a leader in helping advance awareness, collaboration and adoption of soil health and regenerative agriculture practices. Financial and balance sheet progress: Completed approximately $5.6-million in debt and equity financings during the year, supporting completion of Beiseker upgrades, improving liquidity and minimizing share dilution; Settled a significant portion of legacy trade payables, strengthening supplier relationships and improving working capital stability; Reported year-to-date improvements in fertilizer segment gross profit and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the third quarter of 2025, supported by stronger pricing spreads and disciplined cost control, despite seasonal revenue variability. Industry momentum and strategic alignment Replenish operates within a rapidly evolving global agricultural landscape marked by increasing emphasis on regenerative and climate-smart farming practices. In 2025, several influential industry and policy developments underscored the broadening adoption of practices that prioritize soil health, resource efficiency and sustainability across the agri-food value chain. Initiatives such as the Canadian Alliance for Net-Zero Agri-Food's Million Acre Challenge, supported by a multimillion-dollar catalytic contribution to scale regenerative practices across Canadian farmland, reflect cross-sector engagement on climate-smart agriculture. Major food and consumer goods companies have also articulated regenerative agriculture commitments; for example, PepsiCo has publicly announced plans to significantly expand the acreage managed under regenerative practices in Canada, and McCain Foods has advanced a global regenerative agriculture framework with most of its grower partners progressing through adoption phases. At the federal policy level in the United States, the U.S. Department of Agriculture announced a $700-million regenerative pilot program designed to support farmers and ranchers in deploying regenerative practices that enhance soil health and long-term productivity. In addition, major food service organizations, including McDonald's, have publicly committed hundreds of millions of dollars toward regenerative agriculture initiatives in the United States to advance soil health and sustainable production outcomes. Replenish believes these developments -- spanning policy incentives, food-system commitments and industry-wide initiatives -- demonstrate the increasing scale of investment, institutional focus and market attention on regenerative agriculture. The company views this broad momentum as strategically aligned with its mission, products and commercial trajectory as it scales production and licenses its technology in 2026 and beyond. Outlook for 2026: scaling production, licensing revenues and cash flow visibility Looking ahead to 2026, Replenish expects to enter a new phase of execution focused on consistent production, growing sales volumes and increasing cash flow visibility. Key areas of focus include: Beiseker full-scale commercial operations: Achieving and sustaining full production capacity at the Beiseker facility; Increasing sales volumes as granulated fertilizer production transitions fully into steady-state commercial operations; Leveraging operating scale to reduce unit costs and support margin expansion; Positioning Replenish 1, the company's granulated lawn and garden product, for expanded production and broader retail distribution, providing an additional channel to extend brand awareness and product adoption beyond traditional commercial agricultural markets; Licensing production and revenue ramp: Initiating transitional production and sales under both the MJ Ag and Farmers Union licensing agreements; Expecting initial licensed production and sales to begin in 2026, with volumes increasing as partner facilities complete commissioning and ramp operations; Expanding high-margin, technology-driven revenue streams without material capital expenditure, including the ability, through the Farmers Union agreement, to expand production beyond the initial Minnesota facility to other member states; Strategic financing for DeBolt and Bethune facilities: Continuing to evaluate additional financing options and/or strategic partnerships to support the development of the company's planned DeBolt and Bethune facilities; Advancing discussions related to Emissions Reduction Alberta (ERA) grant funding, which would further support the economics and timing of the DeBolt project; Financial discipline and capital allocation: Maintaining focus on working capital management and operating cost discipline; Prioritizing cash flow generation and balance sheet improvement as production and licensing revenues scale; Optimizing capital structure of any debt and equity financing to maximize risk-adjusted returns for shareholders. Management believes 2026 will represent an important inflection point as Replenish moves from asset development into consistent commercial execution across both owned and licensed production platforms. Chief executive officer commentary "Two thousand twenty-five was a year of execution and foundation building for Replenish," said Neil Wiens, chief executive officer of Replenish. "We advanced Beiseker toward full commercial operations, expanded our licensing strategy, and remained actively engaged in industry dialogue around soil health and regenerative agriculture. As broader policy and supply chain initiatives continue to support adoption of regenerative practices, we believe the company is well positioned to scale production and demonstrate the underlying economics of our platform in 2026." About Replenish Nutrients Holding Corp. Replenish Nutrients manufactures and sells proprietary fertilizer products containing essential macronutrients, micronutrients and biological material while using a proprietary zero-waste manufacturing process. We seek Safe Harbor.