Fertilizer Company EarthRenew Finalizes Purchase Of Competitor, Signs Deal To Power Cryptocurrency Miner
EarthRenew (OTCQB:VVIVF), a Calgary-headquartered producer and distributor of organic fertilizers made from heat-treated livestock waste, is pursuing a business expansion of a rival company and has gained a new revenue stream by offering electricity to a cryptocurrency mining company.
What Happened: EarthRenew said Wednesday it has finalized a CA$9-million ($7.4 million) acquisition of Replenish Nutrients, a competitor based in Okotoks, Alberta. The transaction will be payable as CA$1.41 million in cash and 21.2 million common shares of at a price of CA$0.248 per share, based on the closing price of the EarthRenew shares on May 3 less a 20% discount.
According the EarthRenew, the acquisition will enable a strategy to grow its sales volume from CA$10 million to CA$100 million through an expanded focus on regenerative agriculture practices across its Western Canadian market.
“The land is a farmer’s livelihood,” said EarthRenew CEO Keith Driver. “By supporting the adoption of soil health practices, we can rebuild soil, increase resiliency and profitability, and ensure Canada’s farming success.”
What Else Happened: In addition to its fertilizer operations, EarthRenew pursues a secondary revenue source.
Last month, the company signed a power sales agreement with an unnamed cryptocurrency mining company to provide off-peak power over a five-year term. The agreement will power cryptocurrency mining by EarthRenew’s new partner via its 4 MW Rolls Royce turbine in Strathmore, Alberta.
“Cryptocurrency mining is a way for the company to utilize the unique asset at our Strathmore facility while we pursue our primary objective of building a regenerative fertilizer business,” Driver said. “We are excited to have found an off-take partner that was such a good fit with our power production plans.”
(Photo by Matt M./Flickr Creative Commons.)
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