Sponsored Small Cap News

An Interview with EarthRenew CEO, Keith Driver

Sponsored Small Cap News > An Interview with EarthRenew CEO, Keith Driver

Keith Driver interview

We introduced our client EarthRenew Inc. (the “Company” or “ERTH” or “EarthRenew”) in June of 2020. On our visit to its operations in Strathmore, Alberta, CEO Keith Driver took us through the benefits of organic fertilizer and the Company’s agenda… 

EarthRenew’s mission is to support a farm system that puts healthy soils and grower profitability back on the table. Using circular economic principles of upcycling waste products into high-value agronomic inputs, the Company is developing an innovative platform of soil health products intended to establish EarthRenew as a key player in the regenerative agriculture space. 

EarthRenew’s primary revenue stream is the sale of regenerative fertilizers, but the Company also enjoys secondary revenue from generating power and selling surplus electricity. 

EarthRenew in 2021

2021 has already been an important year for EarthRenew, namely due to the Company’s acquisition of Replenish Nutrients Ltd. (“Replenish Nutrients” or “Replenish”). According to EarthRenew, Replenish is “forecasting total revenue of $9.9 million for the period of July 2020 through June 2021, up from $3.6 million for the same period in 2019/2020.”

Click here, here, here and here to read the full releases relating to this acquisition. 

On May 12th EarthRenew announced the closing of the Replenish Nutrients acquisition, a privately held regenerative fertilizer company located in Okotoks, Alberta.

 

Text Interview with Keith Driver, CEO of EarthRenew

*Interview was conducted in May of 2021

Pinnacle Digest: Thanks for taking the time to provide us with an update. How have the last few months been for EarthRenew?

Keith Driver: It’s been a very transformative time for our business.

What began as a simple conversation with Replenish Nutrients about collaborating and bringing our products to market turned into a larger opportunity that ultimately resulted in the acquisition closing on May 12th.   

We found that Replenish was looking to grow their market of organically certified products and we were looking to try to penetrate that market with a relatively narrow product line.  It made sense to combine our efforts.  They are experts at the formulation, blending, and sale of products and EarthRenew is more of an infrastructure play to try to produce those products. 

Together we have a powerful, vertically-integrated formulation, manufacturing, sales, and marketing engine within the regenerative fertilizer space.

We’ve effectively gone from a company looking to enter the market to a company that is now forecasting around $10M in annual revenue (based on Replenish Nutrients’ forecasted revenue for the period of July 2020 through June 2021) with a fleet of products in the organic space.  We are now working with customers and delivering at a scale that would’ve taken us years to develop competency and infrastructure for. 

Click here to read EarthRenew’s corporate update to shareholders from March of 2021.

 

Pinnacle Digest: You’re routinely talking about ‘feeding’ the Earth…what does that mean to you, and how is EarthRenew capitalizing on aspects of the ESG movement? 

Keith Driver: So I’ll break that into two questions.

1. Feeding the Earth ties back to the Organic/Regenerative movements in Agriculture.  

Regenerative Agriculture is a philosophy that requires feeding the soil to feed the plant and results in a net build-up of carbon in the soil, allowing the plant natural resilience.  

Contrast that with conventional ag that utilizes lotions, potions, and sprays that are designed to feed the plant, but fail to build the soil – effectively you are mining the soil over time which leads to the soil becoming naturally less productive.  

In our case, we are focused on Regenerative Ag.  By building back the soil we make the plants more resilient and better able to naturally pull the nutrients they need from the soil while reducing the amount of product growers need to add to the soil. 

So for us, feeding the Earth means building back that top 3 inches of topsoil that is so crucial to the food we eat and makes crops more resilient to impacts of conventional practices that have caused desertification and a gradual loss of arable land. 

2. In many ways, we epitomize the ESG movement. From an environment standpoint, we take waste products and turn them from a problem into a high-value solution w/o runoff and soil contamination issues of other products (click here to learn more about EarthRenew’s production process). And we are doing that in a way that is not as GHG intensive as the alternative through our waste heat recovery processes. 

On the social side, by helping to make farms and soil more resilient, we are supporting building back the farm’s ecosystem by making the farmer less reliant on chemical fertilizers.  This can help make the farm more profitable and it improves the likelihood that the next generation of farmer can stay on the farm. These regenerative choices get them back to being stewards of the land, as opposed to industrial producers under conventional agricultural systems. 

For Governance, we have our BOD and management team to be able to ensure, that as we deliver on these promises and report on these gains, we are as transparent as we can be to meet the needs of an interested and engaged shareholder base.

 

Pinnacle Digest: Many agriculture commodities and some of the larger ag companies have soared in value recently. Is that good news for a small firm like EarthRenew?

Keith Driver: It’s definitely good news for the sector. As we reflect back on what we have all been through with Covid, I think as a society we’ve developed a greater appreciation of food security issues. This has led to greater consideration around the importance of producing food close to home so not to stress supply chains and reduce our carbon footprint. 

When you couple these factors with the regenerative movement and investments from large players like Cargill, PepsiCo and General Mills, all announcing commitments to source products in that manner, a perfect storm emerges. 

Customers are making buying decisions based on where their food comes from, the quality of that food and the sustainability practices used to produce it. 

Similarly, farmers are being influenced by the opportunity to differentiate, grab more value and make their farms more resilient.

 

Pinnacle Digest: From a revenue standpoint, the Replenish Nutrients acquisition appears to be the most consequential transaction in the Company’s history. Can you talk about what this transaction may do for EarthRenew’s bottom line? 

Keith Driver: Absolutely. The Replenish acquisition will dramatically accelerate ERTH’s path to market. So, we go from having marginal sales, and still testing out the best product/market fit, to post-Replenish acquisition where we will have the infrastructure of a ~10M sales organization spanning Western Canada and into the US. It also comes with a suite of soil health solutions, beyond single skew nutrient components, where we can provide full end-to-end solutions and blend those for farmers.

 

Pinnacle Digest: On March 31st, EarthRenew announced relatively significant electricity generation revenue from its Strathmore, AB facility.  

Can you speak to these numbers, and do you hope to have a secondary revenue source from electricity production on future potential sites?

Keith Driver: The Strathmore Plant generated an estimated $342,727 in settlement revenue from electricity sales so far in 2021, with a 77% gross margin. This is compared with $118,222 for the first two months of 2020.

We have the electricity assets in Strathmore and will continue to maximize the revenue potential there. We announced on May 6th that EarthRenew generated a total of $505,097 in revenue, with an 83% gross margin in Q1 2021. See here for further details on those revenue numbers.

There is potential for the Company’s strong revenue from the first quarter of 2021 to be repeated once provisions are in place to service the recently announced ENEL-X and cryptocurrency mining agreements announced on March 31, 2021 and April 23, 2021, respectively. I would encourage everyone to read those press releases in their entirety if they haven’t already.

While energy generation remains secondary to our business, it is material. In order for us to achieve a low-cost production method for fertilizer products we need a source of low-grade heat.  One of the best ways for us to do this is to use the waste heat available for power production. This provides us the heat we need, while driving down our cost of goods. We can achieve this by diverting the power and electricity back to the grid or selling to third parties. So, while it will not be in every installation, as some regulatory environments are less favorable than others, it certainly allows us to improve our emissions density while permitting us to maximize the value from the heat sources we use in our production processes.  

Click here to learn more about EarthRenew’s fertilizer production process.

 

Pinnacle Digest: There could be many reasons to expand your regenerative business into the US market where, seemingly, the regenerative movement is in full swing. On March 2nd, EarthRenew announced it had signed a non-binding letter of intent with Diamond Feeders, LLC for the potential development of EarthRenew’s first facility in the United States. If constructed, the new facility will be located on Diamond Feeders’ large feedlot in the western United States (Colorado), which finishes over 50,000 head of cattle per year and could provide ample feedstock. 

What is the Company’s US strategy? 

Keith Driver: The US expansion is incredibly important to us.  If we look at where the largest markets are for our products it is the Midwest, the Pacific Northwest and then down into California.  So, potentially being in Colorado gives us strong access to those markets.

Click here for further details relating to EarthRenew’s non-binding LOI with Diamond Feeders, LLC.  

2022 wont be a big year for us in terms of penetrating into the US, but you could start to hear announcements more from us in the second half of 2022 as we look at distribution agreements servicing the northern US markets from our Canadian location.

 

Pinnacle Digest: Lastly, what message do you want to leave investors with? 

Keith Driver: We are an obvious option to the investor who cares about Environmental Sustainability.  We are building a company that contributes to reversing climate change by rebuilding soil organic matter and restoring degraded soil biodiversity to improve both carbon drawdown and water cycles.

We upcycle low value nutrients, things that would be wasted, into a form of high value and comparable agronomic utility.  So, a similar utility from an agronomic benefit as primary commodities, and we can sell those at the same price as conventional fertilizers but in a form that not only adds the nutrients, but adds back carbon to the soils and builds back the soils.

The ability to scale our business by providing products that the farmers are used to, in forms that they are used to, ie. Granules, but that are produced in a form that is healthier for the soil, more bioavailable and fits with a mandate of regenerative agriculture is a major driver behind our business. 

We will be bringing new formulations to market in the future, but we’ve hit sales and anticipate reaching EBITDA positive in the near future. 

Lastly, our goal is to turn our business from a 40,000 ton annual production company of regenerative fertilizer to a 400,000 ton operation over the next 3 years in Canada and the US.

——–END OF TEXT INTERVIEW———-

We hope this report provides a high-level overview of EarthRenew and its near term plans, but it is not intended to be exhaustive. Recognize that we are biased when it comes to EarthRenew. EarthRenew is a sponsor and client of Pinnacle Digest, making us cheerleaders. Conduct your own thorough and independent due diligence to properly understand the risks associated with investing in a speculative company of this nature. A good place to start your due diligence is reviewing the Company’s Sedar filings at www.sedar.com.

EarthRenew Inc. trades on the following exchanges: (CSE: ERTH) (OTCQB: VVIVF) 

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SEDAR Filings

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Disclosure, Compensation, Risks Involved and Forward-Looking Statements:

You must read the following carefully before proceeding.

THIS REPORT IS NOT INVESTMENT ADVICE, NOR A RECOMMENDATION TO PURCHASE ANY SECURITY, NOR IS IT INTENDED TO BE A COMPLETE OVERVIEW OF EARTHRENEW INC. THE INFORMATION IN THIS REPORT IS NOT A SUBSTITUTE FOR INDEPENDENT PROFESSIONAL ADVICE. SEEK THE ADVICE OF YOUR FINANCIAL ADVISOR AND A REGISTERED BROKER-DEALER BEFORE MAKING ANY INVESTMENT DECISIONS.

All statements in this report are to be checked and verified by the reader.

This report, which includes the text interview with Keith Driver, may contain technical or other inaccuracies, omissions, or errors, for which Maximus Strategic Consulting Inc., owner of PinnacleDigest.com (“Pinnacle Digest” or “Maximus” or “we”), assumes no responsibility. We cannot warrant the information contained in this report to be exhaustive, complete or sufficient. This report does not purport to contain all the information that may be necessary or desirable to fully and accurately evaluate an investment in EarthRenew Inc. (“EarthRenew” or the “Company” or “ERTH”). EarthRenew is a client and sponsor of PinnacleDigest.com. PinnacleDigest.com authored and published this report. Because we are paid by EarthRenew, and therefore we are not independent reporters, our coverage of EarthRenew features many of its positive aspects, and not the potential risks to its business or to investing in its stock.

Important: Our disclosure for this report on EarthRenew Inc. applies to the date this report was posted on our website (June 16, 2021). This disclaimer will never be updated, even if we buy or sell shares of EarthRenew Inc.

 

Do Your Own Due Diligence: An investment in securities of EarthRenew should only be made by persons who can afford a significant or total loss of their investment. EarthRenew’s stock price is volatile, and its shares are thinly traded. The value of the Company’s securities may experience significant fluctuations due to many factors, some of which could include operating performance, performance relative to estimates, disposition or acquisition by a large shareholder, a lawsuit against EarthRenew, the loss or acquisition of a significant customer, industry-wide factors, and general market trends. There can be no assurance that an active trading market for EarthRenew’s common shares will be established and sustained.

In all cases, interested parties should conduct their own investigation and analysis of EarthRenew, its assets and the information provided in this report. Readers should refer to EarthRenew’s public disclosure documents found on the SEDAR website (www.sedar.com) before considering investing in the Company. The public disclosure documents will help investors understand EarthRenew’s objectives and the risks associated with the Company.

The securities of EarthRenew are highly speculative due in part to the nature of the Company’s plans/objectives, the highly competitive industry it operates in, and the early stage of EarthRenew’s development, which involves research and development for its technologies, the creation of new organic fertilizer formulations, and commercialization initiatives that are not fully developed. The Company has limited financial resources, and no assurances that sufficient funding, including adequate financing, will be available to advance its objectives. If the Company’s generative commercialization and development programs are successful, additional funds will be required for development of one or more initiatives. Failure to obtain additional financing could result in the delay or indefinite postponement of further business development. There can be no certainty that EarthRenew will be able to implement successfully the objectives and strategies described in this report. A prospective investor should consider carefully the risk factors set out in this disclosure statement and outlined in the Company’s annual and quarterly Management’s Discussion and Analysis, and in other filings made by EarthRenew with Canadian securities regulatory authorities available at www.sedar.com.

Please be aware and note the date this report was published (June 16, 2021). As a result of the passing of time, the relevancy of the opinions and facts in this report are likely to diminish and may change. As such, you cannot rely on the accuracy and timeliness of the information provided in this report. Since there is no specific guideline as to how long this report may remain relevant, you should consider that it may be irrelevant shortly after its publication date.

The statements and opinions expressed by representatives of Pinnacle Digest are solely those of Pinnacle Digest and not the opinions of EarthRenew. The statements and opinions expressed by representatives of EarthRenew are solely those of EarthRenew and not the opinions of Pinnacle Digest.

Unless otherwise indicated, the market and industry data contained in this report is based upon information from industry and other publications and the knowledge of Pinnacle Digest and EarthRenew. While Pinnacle Digest believes this data is reliable, market and industry data is subject to variations and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Pinnacle Digest has not independently verified any of the data from third-party sources referred to in this report or ascertained the underlying assumptions relied upon by such sources.

 

Cautionary Note Regarding Forward-Looking Information: This report contains “forward-looking information” within the meaning of Canadian securities legislation (collectively, “forward-looking statements”). All statements, other than statements of historical fact, that address activities, events or developments that EarthRenew or Pinnacle Digest believes, expects or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements also include, but are not limited to, statements regarding: the Company’s projected revenues and corresponding gross margin; the Company’s ability to integrate Replenish Nutrients Ltd. into its business; the anticipated benefits of acquiring Replenish Nutrients Ltd., including significantly expanded production capacity; the ability of Replenish Nutrients Ltd. to achieve the earn-out targets set out in the terms of the acquisition agreement with EarthRenew; the proposed synergies among EarthRenew and Replenish Nutrients Ltd.; the future financial position, business strategy and objectives, potential contracts, budgets, projected costs and plans of or involving EarthRenew; future growth predictions for the organic fertilizer and organic food industries; the evaluation and implementation of various technologies to increase and maximize the efficacy of EarthRenew’s fertilizers; EarthRenew’s organic fertilizer improving the health and productivity of soil; the Company’s ability to develop and market specialist formulations in the future; expectations for future revenues, earnings, capital expenditures, operating and other costs; EarthRenew being in a growth phase; market forecasts and predictions; EarthRenew’s Strathmore Plant being able to operate 24/7 in the future; the energy efficiency and net energy costs of the Company’s Strathmore Plant; the nature of potential business acquisitions and partnerships; EarthRenew being able to capitalize on peak electricity prices and that it will be able to provide electricity to power grids during peak demand times; production costs; the timeframe of when EarthRenew’s fertilizer product(s) will be market ready; the Company being able to provide a consistent quality of organic fertilizers; the timing of the completion of various development projects; the Company significantly increasing its development in the future; the Company’s intention to grow its business and operations in Canada and the United States; the future performance of EarthRenew; expectations for revenues, expenses, production, and anticipated cash needs; the expected timing and completion of EarthRenew’s near-term and long-term objectives; emissions reductions and credits from various activities; the competitive advantages, future business plans and future product offerings of EarthRenew; the regulatory environment in which EarthRenew operates; potential future commercial deals; the Company’s ability to maintain and expand geographic scope; the Company being able to attract and retain key personnel; currency exchange and interest rates; the impact of competition; the changes and trends in EarthRenew’s industry or the global economy; the Company’s ability to conduct field trials; the results of the field trials; the validation of historical results; the creation of new organic fertilizer formulations; the Company’s ability to produce products/services of high quality; the future potential applications/verticals or use cases for EarthRenew’s technologies or products; future sales; the Company being able to achieve EBITDA positive in the near future; EarthRenew epitomizing the ESG movement; EarthRenew being able to help make farms more profitable; the Replenish Nutrients Ltd. acquisition being the most consequential transaction in the Company’s history; the likelihood of EarthRenew being able to repeat its past revenue performance in the future; the potential benefits for the Company from the agreements EarthRenew made with a cryptocurrency mining firm and Enel-X; the Company’s ability to execute its business plan, including its objectives to scale and build a regenerative fertilizer business; the Company’s ability to advance its non-binding letter of intent with Diamond Feeders, LLC into a binding agreement in connection with the potential Colorado site; the Company’s ability to install a blending and granulation facility and construct a fertilizer production facility at the potential Colorado site; the Company’s US expansion strategy; correlating the increase in value of agriculture commodities and the valuations of large agriculture-related companies as a potential benefit for EarthRenew; timelines for permitting, designing and constructing new projects; potential distribution agreements; future projected fertilizer production capacity; the Company’s ability to sell products in the organic fertilizer market in various regions of North America; EarthRenew’s ability to raise additional capital to fund its operations, and other statements, estimates or expectations.

Information provided relating to projected costs, revenues, capital expenditure, production profiles and timelines are expressions of judgment only and no assurances can be given that actual costs, production profiles or timelines will not differ materially from the estimates contained in this report.

Often, but not always, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “targets”, “forecasts”, “intends”, “anticipates”, “scheduled”, “estimates”, “aims”, “will”, “believes”, “projects”, “could”, “would”, and similar expressions (including negative variations) which by their nature refer to future events.

By their very nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond EarthRenew’s control. These statements should not be read as guarantees of future performance or results because a number of assumptions and estimates have been made, and they may prove to be incorrect. Forward-looking statements are based on the opinions and estimates of EarthRenew’s management or Pinnacle Digest at the date the statements are made. In this report, assumptions may have been made regarding, among other things, demand for the Company’s products/services being strong; EarthRenew being able to fund its development plans; EarthRenew being able to secure future financing to meet its growth targets; EarthRenew’s ability to maintain a consistent and reliable supply chain of third party products/services required to complete its development plans and provide organic fertilizers to the market; the Company’s ability to transition to new products; EarthRenew successfully completing its field trials, and doing so on schedule; an increase in the number of potential customer relationships; the length of sales cycles; the competitive environment; the ability to maintain or accurately forecast revenue from the Company’s products or services; the ability of the Company to identify, hire, train, motivate, and retain qualified personnel; the ability of the Company to develop, introduce, and implement new products/services as well as enhancements or improvements for existing products that respond in a timely fashion to customer requirements and rapid technological change; risks associated with operations; the impact of any changes in the laws and regulations in the jurisdictions in which the Company operates; EarthRenew’s ability to carry on current and future operations; the ability of the Company to meet current and future obligations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the current and future social, economic and political conditions; currency exchange rates; the availability and cost of inputs; the Company’s ability to complete proposed acquisitions, agreements or transactions; the future size of the markets that EarthRenew intends to service, and other assumptions and factors generally associated with the organic fertilizer and energy industries. We caution all viewers that the foregoing list of assumptions is not exhaustive.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of EarthRenew to differ materially from those discussed in the forward-looking statements in this report and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, EarthRenew. Factors that could cause EarthRenew’s results to differ materially from those expressed in forward-looking statements in this report include, but are not limited to, the following risks and uncertainties: any development activities EarthRenew may conduct which may not produce favourable results; changes in the price of electricity; EarthRenew may not be able to protect intellectual property rights; reliance on third parties for products, supplies and/or services critical to the Company’s operations; the intellectual property of others and any asserted claims of infringement; general business and economic conditions may limit the Company’s ability to obtain necessary capital to carry out all of its business plans; the overall performance of stock markets; volatility in the Company’s stock price; foreign exchange fluctuations; the consequences of competitive factors in the highly competitive industry in which EarthRenew operates may restrict the success of any product or service it is able to commercialize or develop; the impact of viruses and diseases on the Company’s ability to operate; unexpected geological or environmental conditions; actions of competitors and partners; the inherent uncertainties associated with operating as an early stage company; the ability of the Company to generate commercial sales of products; the ability to develop repeatable processes to manufacture its products in sufficient quantities; the immaturity of the organic fertilizer market; the effectiveness of the Company’s products; acceptance of products and services by target markets; the regulatory environment; the corporate governance required for environment and regulatory reporting requirements for EarthRenew and its clients; product capability and acceptance; the Company’s ability to generate sufficient cash flow from operations to meet its current and future obligations; the Company’s ability to scale its operations as expected or as targeted; the potential for issues which could expose the Company to legal liability; the Company may not be able to raise the additional funding required to complete its development plans and to continue to pursue its other business objectives; the Company may not be able to attract or retain key personnel; conflicts of interest; officers and directors allocating their time to other ventures; the willingness of third parties to sign agreements with EarthRenew on terms that are acceptable to management of EarthRenew; management’s ability to manage growth; major changes in the political and economic environment of EarthRenew’s fields of activity; the risks inherent in the lifecycles of products in the agriculture industry; fluctuations in the supply and demand for soil amendments; risks related to the response-time that might be needed in case of totally unexpected events in areas relevant to EarthRenew’s field of activity; the market in which EarthRenew operates may not continue to expand, and potentially even contract; failure to develop and successfully market new products at favourable margins; diseases such as BSE, avian flu or hoof and mouth disease; EarthRenew may not be able to provide a consistent quality of organic fertilizer; dilution and future issuances of equity; loss of key customers; fluctuating availability and costs of inputs; unanticipated problems related to EarthRenew’s business objectives; one or more revenues streams of the Company’s may underperform compared to projections; Replenish Nutrients Ltd. may underperform expectations and projections; the Company may not achieve or maintain standards required to be ESG compliant; the Company’s electricity sales may not reach expectations and even contract compared to historical results; the ENEL-X and/or cryptocurrency mining agreements may not generate substantial or any revenue for the Company; the Company may never reach EBITDA positive; the Company’s redevelopment plan for its Strathmore Plant may not enable it to operate as intended; the Company’s ability to obtain and/or maintain any necessary permits, consents or authorizations required to pursue its business objectives; general business, economic, geopolitical and social uncertainties; the risk of claims and legal actions for various commercial and contractual matters in respect of which insurance is not available; and other risks pertaining to the organic fertilizer and energy industries as well as those factors discussed in the section entitled “Risk Factors” in EarthRenew’s Annual and Quarterly Reports and associated financial statements, Management Information Circulars and other disclosure documents filed with Canadian securities regulators. The Company’s filings can be found on the SEDAR website (www.sedar.com) under EarthRenew’s issuer profile.

Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking information contained in this report or incorporated by reference are made as of the date of this report (June 16, 2021) or as of the date of the documents incorporated by reference, as the case may be, and Pinnacle Digest does not undertake to update any such forward-looking information, except in accordance with applicable securities laws. Accordingly, viewers are cautioned not to place undue reliance on forward-looking information because we can give no assurance that such expectations will prove to be correct. Should one or more of the aforementioned risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, or expected.

 

We Are Not Financial Advisors: This report does not constitute an offer to sell or a solicitation of an offer to buy EarthRenew’s securities. Be advised, Maximus Strategic Consulting Inc., PinnacleDigest.com and its employees/consultants are not a registered broker-dealer or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer.

PinnacleDigest.com is an online financial newsletter owned by Maximus Strategic Consulting Inc. We are focused on researching and marketing for small public companies. This report is intended for informational and entertainment purposes only. The author of this report and its publishers bear no liability for losses and/or damages arising from the use of this report.

Never, ever, make an investment based solely on what you read in an online newsletter, including Pinnacle Digest’s online newsletter, or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn’t well known.

 

We Are Biased: EarthRenew is a client of ours (details in this disclaimer on our compensation). We want to remind you that we are biased when it comes to EarthRenew.

Because EarthRenew has paid us CAD$300,000 plus GST for our online advertising and marketing services, you must recognize the inherent conflict of interest involved that may influence our perspective on EarthRenew; this is one reason why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor and a registered broker-dealer before considering investing in the Company. Investigate and fully understand all risks before investing.

PinnacleDigest.com is often paid editorial fees for its writing and the dissemination of material. The clients (including EarthRenew) represented by PinnacleDigest.com are typically early-stage companies that pose a much higher risk to investors than established companies. When investing in speculative stocks such as EarthRenew it is possible to lose your entire investment over time or even quickly. EarthRenew is not an appropriate investment for most investors.

Important: Set forth below is our disclosure of compensation received from EarthRenew as of June 16, 2021:

Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid CAD$300,000 plus GST to provide online advertisement coverage for EarthRenew for a twelve-month online marketing agreement. EarthRenew paid for this coverage. The coverage includes, but is not limited to, the creation and distribution of reports authored by PinnacleDigest.com about EarthRenew (reports such as this one), as well as display advertisements and news distribution about the Company on our website and in our newsletter. Please recognize that Maximus Strategic Consulting Inc. may benefit from price and trading volume increases in EarthRenew.

 

EarthRenew is a Very Risky Investment: EarthRenew is an early-stage company that poses a much higher risk to investors than established companies. Risks and uncertainties for early-stage companies such as EarthRenew are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. Visit www.sedar.com to review important disclosure documents for EarthRenew.

EarthRenew will likely need to raise additional capital in the future to fund its operations, resulting in dilution to its shareholders.

EarthRenew’s past historical production and revenue is not necessarily indicative of future production or revenue potential for the Company.

 

History of Operating Losses: EarthRenew has a relatively limited operating history from which an investor can evaluate its business and prospects. EarthRenew has generated net losses and negative cash flow from operations since the commencement of operations and EarthRenew may incur net losses and negative cash flow from operations for a significant period of time as it attempts to expand its operations, relaunch organic fertilizer productions and applies for regulatory permits and approvals. There is no assurance that the Company will achieve or maintain profitability and it may continue to incur significant losses in the future. Furthermore, the Company’s revenues may fluctuate substantially from quarter to quarter.

Operating results and the price at which EarthRenew can sell products will be dependent on demand for products. Demand for products will be affected by a number of factors including weather conditions, commodity prices, and government policies. It is likely that the price at which EarthRenew sells its products will fluctuate if there are significant changes in the price and availability of other fertilizer products.

EarthRenew’s technology has not yet been commercialized outside of the Strathmore Plant or in other industries. There can be no assurance that EarthRenew will be able to commercialize this technology or that EarthRenew will be able to enter into licensing, joint ventures or other arrangements to develop other applications for this technology at other locations.

 

Cautionary Note Regarding Intellectual Property: EarthRenew’s success will depend in part on its ability to maintain or obtain and enforce patent and other intellectual property protection for processes, products and technology, to preserve trade secrets and to operate without infringing upon the proprietary rights of third parties. Setbacks or failures in these areas could negatively affect EarthRenew’s ability to compete and materially and adversely affect its business and financial condition. EarthRenew has obtained patents or filed patent applications in the United States, Canada and internationally and may, in the future, seek additional patents or file additional patent applications. Certain aspects of EarthRenew’s technology are currently protected as trade secrets, for which the Company may or may not file patent applications.

There can be no assurance that EarthRenew’s patents or patent applications will be valid or will issue over prior art, or that patents will issue from the patent applications that have been filed or will be filed. Additionally, there can be no assurances that the scope of any claims granted in any patent will provide the Company with adequate protection for the processes used by the Company currently or in the future. EarthRenew cannot be certain that the creators of EarthRenew’s technology were the first inventors of inventions and processes covered by patents and patent applications or that they were the first to file. Accordingly, there can be no assurance that EarthRenew’s patents will be valid or will afford EarthRenew with protection against competitors with similar technology or processes.

 

While the information contained in this report has been prepared in good faith, neither Maximus Strategic Consulting Inc. nor Pinnacle Digest, give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this report (all such information being referred to as “Information”) and liability therefore is expressly disclaimed to the fullest extent permitted by law. Accordingly, neither Maximus Strategic Consulting Inc., nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this report or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this report.

PinnacleDigest.com’s past performance is not indicative of future results and should not be used as a reason to purchase any security mentioned in this report or on our website.

The past successes of members of EarthRenew’s management team, board of directors, and advisory team are not indicative of future results for the Company.

Maximus Strategic Consulting Inc. and PinnacleDigest.com (including its employees and consultants) are not chartered business valuators; the methods used by business valuators often cannot justify the trading price for most junior stock exchange listed companies, including EarthRenew.

Any decision to purchase or sell as a result of the opinions expressed in this report OR ON PinnacleDigest.com will be the full responsibility of the person authorizing such transaction, and should only be made after such person has consulted a registered financial advisor and conducted thorough due diligence. Information in this report has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Our views and opinions regarding the companies we feature on PinnacleDigest.com and in this report are our own views and are based on information that we have received, which we assumed to be reliable. We do not guarantee that any of the companies mentioned in this report (specifically EarthRenew) or on PinnacleDigest.com will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.

Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, does not undertake any obligation to publicly update or revise any statements made in this report.

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Trading in the securities of EarthRenew is highly speculative.

To get an up to date account on any changes to our disclosure for EarthRenew (which will change over time) view our full disclosure at the url listed here: https://www.pinnacledigest.com/disclosure-compensation/.


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