As directly into the mic. But yeah, I'll get the back, and I'll give you. Now presenting Neil Wiens from Replenish Nutrients.
Let everybody get in and out. They're making me stand in front of the mic, so I apologize. I like to usually walk around and cause a little chaos, but we won't do that. I did promise the last investor that the very first time or very first thing that I should always start with is hold up the bag and say, it's better and it costs the same. He said, that'll always get everybody's attention, and away we go. That is it. It is better, and it costs the same. Going to start off with a little bit of a story. What the story is about the end of the 1940s, beginning of the 1950s, this weird thing called the washing machine came into play and changed the life of basically everybody as far as all the households.
The ladies didn't have to go and wash clothes. They were sitting in there and had this great new brand-new washing machine. What happened was, though, is they had to use soap, and soap didn't sud, and it didn't seem to wash it quite as clean. What did they end up doing is somebody came up with the solution that the biggest reason that your water didn't work properly, that your washer didn't work properly, is because you had probably had hard water, which had calcium, magnesium, iron, all the fun things in it. What happened was this little company called Procter & Gamble came along and created a product called Tide. Tide had a thing called phosphate.
Phosphate then became the main thing that the more phosphate you had, and these companies were then battling because the more phosphate you had would make more suds in your washing machine and make your clothes softer, and everything was good. It got to a point so bad during the 1960s that the rivers coming into these Great Lakes, and the reason I'm telling this story is because, of course, we're sitting beside Lake Ontario, and so we need this side of it where the rivers were so full of suds that they would actually eliminate and really bury people underneath.
It came to a point where there was a couple kids that drowned in these bloody rivers. That is not the funny part by any means, but they had to finally go, well, what is causing all this real big foam in these rivers? They backtraced it, and of course, there was a thing during the daytime, there was this thing called the soaps. Why do you think they were called the soaps? Whole main reason, obviously, my crowd is not going to tell me what they think. The whole main reason they call them the soaps is because every ad during the 1950s and 1960s during the soap operas happened to be a Tide or a Sunlight or whatever ad during that thing. The soaps actually sponsored all those daytime things for the ladies. It is kind of funny, but that is what happened.
They had a great big lobby group on the phosphate side, so it took them probably about five years to figure out why indeed that we were getting these algae blooms in Lake Ontario and why all this foam was coming here into this side of this thing, and it turned out to be a phosphorus problem. Therein lies really the reason we are here today is phosphorus then, and I am kind of doing this backdoor-wise here because, again, we are by these lakes. What ended up happening is when you have chemical phosphorus or chemical sulfate or chemical anything as far as a fertilizer product, what happens is it when it is chemical, it is water soluble. When it is water soluble, guess where it ends up? In the water.
If it does not end up in the plant quick enough during that grow season, and we get a big rainwater flood or anything else like that, what happens is it ends up in your lakes, and we get these algae blooms, and we get everything else that happens. Herein lies the major problem with commercial farming these days. I am a farmer myself. My dad has been using chemical fertilizer for 70, 80 years. Same things, urea, monoammonium phosphate, ammonium sulfate. During that whole period of time, I have always asked, what else has changed in agriculture? The tractor that we had 70 years ago darn well is not the tractor I am using now. The seeder I have is not the same one. The same seed is not. The same chemistry. Everything, 99% of everything in agriculture has changed in agriculture except for our fertility products.
I am guessing we did not hit it 100% on the head day one. There is no way. What is the other problem that exists? I guess that is where my problem was as I grew up, and that is probably why Dad kicked me out at 18, was the fact that I kept asking why right to the end of this thing, and I still do. I am now 55, and I still ask, why are we doing this? My background is an actual animal nutritionist by trade. When that happens, you are going, okay, what the heck is an animal nutritionist doing in a fertilizer company? I will tell you. Main reason being is the guys who come and sell me fertilizer on my own farm are agronomists. That is what they are. All they try and do is sell me chemistry.
I chase chemistry around right from my fertility, right to my fungicide, right to my pesticide. We're always chasing the next round of chemistry to chase biology. I took it up in my last one here where if you guys remember that little show called Jurassic Park, there was a guy named Dr. Malcolm that said, nature will find a way. It always does. That's where we go is why we keep chasing biology with chemistry when we know biology will always win. That's why the change in the thought process of being an overall, hey, balanced nutrition, understanding everything came into place with the side of it. Now I've got to try and figure out actually how to change this thing around. No, not that one.
I didn't really pay attention when you were telling me what I was going to do.
You should be able to do that one.
Oh, that one right there. Now that I've got all the rest of the stuff I screwed.
There we go.
There we go. Here is a really exciting slide for everybody who wants a really quick read. Ultimately, here is share structure, and majority of you have it probably in your pamphlets or something. I am not going to stand here a whole bunch other than the fact that over the last three, four months, and this is part of my points on the capital structure and then why to invest, over the last three, four months, we added a very strategic partner, which then added substantial amount of capital to our thing, to our structure, and here and there lies the fact that I am almost an Aussie mining company right now with a lot of Brazilian shares. Investment thesis. Why invest? If you were in this conversation four months ago and you invested, you probably actually like me today. We were CAD 0.125 at that point in time.
We are CAD 0.25, CAD 0.26 right now, so you would have doubled in a four-month period. We have a variety of sides, so that was number one, invest. Number two, we have created three facilities that I talked about that were coming online. They are online. The third one is just coming online. I was there last week. My eyes were burning from sulfur because that is the wonderful thing of sulfur, but it was there, and we were starting to run one out of four machines. Things are starting to come. They are rocking and rolling to the next site. We brought in over CAD 15 million of capital over that period of time since that last meeting, and we are now fully funded, at least for our next project.
Matt put it wonderfully in our last meeting as somebody said, are you guys needing capital? Of course, me being the CEO says, no, I am good today. Matt says, we are a microcap company. We always need capital. He said, well, fair enough. It is a matter of if all of a sudden I do find the right opportunity, which, trust me folks, we are always looking for that right opportunity. Is it somewhere in California? Is it somewhere in Brazil? Is it somewhere in Saskatchewan for the next facility? There is always that need, and there is that realization that we need to expand past what we are doing today. What do I got here? We got conventional agriculture. I think I just put it overall on what actually is the chaos.
I backdoored this with my prologue on this, or prelog, I guess it would have been, into this where that we were able to have a side of it all where what fertility projects need to change. The reason I am an animal nutritionist and love doing this is the world's largest feed lot exists in the top six inches of soil. If you go and actually put it under a microscope, you have trillions and trillions and trillions of microbes in this thing.
If you think of it the same as I am feeding my dog or feeding my chicken or feeding my kid and put it into a thought process of understanding that I need to give them a balanced nutrition of vitamins, minerals, all the rest of this stuff, not just meat and potatoes, as much as my dad tried to do that to me, which was great.
Not just meat and potatoes. If you do it all, we get healthy. We can all of a sudden withstand all those problems that happen in your gut. You can battle all the uglies that come your way, and now all of a sudden your soil is healthy. It is not only you trying to be healthy, but it is also your whole biological system. It is funny. We sit here as people, and who in here takes multivitamins or vitamin supplements? Basically everybody. Why do we do that? Probably because we are missing something in our diet, right? The reason we are missing something in our diet is because our food density sucks. It really is. Who in here can say that they have tasted a good tomato in the last 10 years? Right? It just doesn't work.
That is really what we are trying to get back is if you have everything in that soil that is going to give that plant what it needs, shockingly as food nutrient density gets higher and it comes along for the ride. More and more what I am just saying here is you have an ecosystem that changes. If I keep hitting it with a fungicide, and I mentioned it here again, where when all of a sudden I am chasing chemistry with chemistry all the time, we are trying to get rid of funguses in our plant system, and you hit it with a fungicide. But the fungicide doesn't care if I am killing a good guy or a bad guy. It really doesn't. If you go and look in the soil, you got probably 90% of them are good guys, and you just absolutely wax them out.
Now all of a sudden, I have a soil that can't defend itself as we go forward, and that is really why we talk about regenerative and really what we are trying to do here. This product that you are looking at in this bag is more than just a fertility product. It is actually a probiotic for the soil. Inside here, I have over 1,000 identifiable living microbes that are physically good for the soil that actually start incubating, bringing back what we have been killing, and bring it back to where you can do stuff. Some pretty cool stuff that happens when you actually just follow the yellow brick road. Our portfolio, we have three main products. All of them are run with elemental sulfur is my main thing, and elemental sulfur comes out of that oil and gas industry.
It is a byproduct, but it is very natural as far as a product. It was funny. I was in Kona a bunch of years back, so the Big Island, and we did the tour of the volcano. I do not know if any of you have actually done it and then did that. Right now it is blowing up, so you are probably not there. But when it was not blowing up, it was pretty interesting. You go along and you get closer to some of these vents, and there is this yellow stuff that is around all the vents, and of course, it is sulfur. They originally started mining the sulfur with this. When I was there, then the biologist or the tour guide was physically telling us about the trees downwind, or not downwind, but upwind of the volcano, were starting to die from this fungus.
Me, being this weird little biologist guy, sits there and I said, it is the sulfur problem, I bet. They are going, which way are the winds coming? I said, well, the winds go the other way, so there is your problem. They are going, well, what do you mean? I said, sulfur is a natural fungicide. If you actually run it the other way, I guarantee that within a distance, that fungus starts to disappear because it is still getting some of that. He is going, g ee, I think you are probably right. Again, I cannot ever validate whether that is whiz, but it was an interesting conversation, and that is how it ended up going. Sulfur is my baby. I love that stuff. Rock phosphate is the other piece.
When I talk balanced nutrition, and what we do, folks, is when phosphate rock is mined out of the side, and whether it is in Florida, whether it is in Morocco, or whether it is in Northern Ontario, it always only has about 25%-30% of the overall side of it all. What it is attached to is that calcium, magnesium, iron, copper, all the rest of the goodies that come in, all the multi-nutrient vitamins that we are taking to fill it up, is already in this chunk of rock. We use it all. I have a zero-waste product. That is what is really cool about our thing is not only am I doing a fertility product, not only is it balanced nutrition, but I have zero wastewater. I am not trying to figure out how to create an environmental permit and create.
I can go and build in a big facility the size of this one, couple floors, and get you guys a 50,000 ton facility in that footprint. I do not have to go and do an environmental permit regarding. It is really, really interesting, and it makes things a lot easier on us and anybody who is interested in licensing our product. Carbonatite. The [CAD 15 million] that came into our facility here would have been, when was that? July 3rd or 4th. Just after our last meeting. It was a company called SRC Agrominerals. It is a mine here just north of Sudbury, Ontario. It is an activated calcium, and calcium a main ingredient to everything. I am not going to bore you with the agronomics on that.
But at the end of the day, it became very, very apparent on how much it actually physically helped our product's efficacy.
Not only were they a strategic investment, but they were a strategic ingredient as we move forward. That gives you a little bit better idea on who I brought in. It wasn't just for the money, folks. It was physically for the strategic side of it all, their people that are involved with them, and also the product itself. The shift is here for fertilizer. People are starting to actually figure this thing out. We have this chemical side of it all. We're understanding that there needs to be something different. Right now is a great timing. We got the Strait of Hormuz problem, where fertilizer's down or getting stretched and squeezed. Everybody's prices are up. People are looking for solutions. This regenerative side is huge, and it was a little funny.
I did have a thing came across, and we don't have nitrogen as far as our package, but the nitrogen biological piece right now is estimated to be at $6.1 billion by year 2030 of just nitrogen-fixing biologicals. So it's kind of interesting on what everybody's brain power is going into. Then of course, that's also bringing in the Bayers, the BASFs, the Syngentas of the world, the Cortevas of the world are actually going this. So this isn't just small potatoes coming down the line, and that's what I really like about it is it's not just Neil standing up in front of a podium telling weird phosphate stories, but it's actually real large multinational companies that are actually still chasing this biological shift. How are we actually expanding? Right now, our foundation is a couple facilities in Beiseker.
We have our own granulation facility, which has just gone to a 24-hour production, which is fantastic. We have a facility that's actually hooked onto what we call a Hutterite colony, and they're doing a tolling agreement for our pelleting side. On the expansion of the licensing, we've done a great deal with the Farmers Union Enterprises down in the U.S. So they're a huge cooperative down there, and what they've actually ended up doing is built the facility for us just in Crookston, Minnesota. It's in the heart of potato and sugar beet land, so great fertility in the Red River Valley. They're just really making sure that it's for surety supply. They are in five different states in there, so expansion for them is this one goes, then the next one, then the next one, then the next one. It just makes sense in their world.
They're physically, as an enterprise, they're actually mandated to spend about CAD 160 million a year in capital infrastructure. So you can imagine our potential with this one. Those are those. This just gives you the overall on the Farmers Union. What I like to really show people is going like, Neil, you're calling for another 150,000 tons. You're calling for 300,000 tons. That's going to be way crazy amount. How do you get rid of that stuff? Really what it ends up being is when we take a look at this product here, when I go to a farmer, they typically put on about 200 lbs per acre. So 200 lbs per acre, that means for one ton, I end up doing about 10 acres. So when we're doing a 50,000 ton facility, I'm only doing half a million acres. These guys themselves, their membership has 70 million acres.
It gives you an idea on how we can scale up and just the thought process on is this a one-shot deal? Is this only one thing? It goes back into why you should invest. I think we're not really that sexy. It's a fertilizer pellet, but boy, does it make green grass and grow good food. At the end of the day, we're going to be doing over 150,000 tons-300,000 tons a year here. By next year, our run rate will be about 180,000 tons.
You multiply that on average at CAD 600 a ton revenue, it gives you an idea at a 20% margin. Those are quick numbers and quick math for you on that end of things. Company information. This is who we are. One thing I will point out, we're a very lean team. Half of my team. Two-thirds of us are here today, my CFO, Matt Greenberg, and then my COO, Kevin Erickson, who is the other co-founder, are really the team. We brought on a guy named Tim Close as our Chairman, who was part of SRC Agrominerals. Look him up. You'll understand why we're going to become very aggressive. The man ran the company called Ag Growth International for eight years, took it from CAD 300 million to CAD 1.5 billion in that eight years.
Our mentality change has been wonderful, and it's been a lot of fun, to be honest, in the last four months. Any questions?
The three facilities that just came online, I know they're ramping. When would you expect those to hit full capacity?
Three facilities coming online, when are they going to hit full capacity? The Beiseker at our own thing, we are going to 24-hour production, so full capacity, as long as that 24 hours keeps going 24 hours, we are there. The Hutterite facility, we are still getting little tweaks on that. What is our guidance on that? We are already at essentially 800 tons a month out of that one.
[audio distortion]
Yep. For full capacity on that one. Crookston, we are running one line out of the four. It is just a matter of getting all those because you can imagine, if I am sitting in there and they are all in one line that goes there, and if I go and wreck one of them, I wreck all four of them at the same time. So we are tweaking that and getting it so it is 100% perfect. So we are anticipating same thing, end of the year, beginning Q1, that it is actually at full capacity of 5,000 tons a month.
It will be dictated, just qualifying that by the [audio distortion] At the end of the day, [audio distortion] You always hear the story about there is like three growing seasons [audio distortion]
Yeah. That's about it.
[audio distortion] so it won't be like this perfect divide [50,000 ton by 12]. [audio distortion]
Yep.
What's your sales channels? [audio distortion] the mass farmers and are you going direct to them? Have you got an intermediary and are you doing retail?
What's our sales channel? Retail is that Replenish 1. We actually have a company that's gone across. They got great traction now into Federated Co-op, into their retail stores. We got great traction across B.C. We just had Brian Minter, I think is his name, did a great big article on us in the Vancouver Sun. So that part has actually really gained massive traction. On the commercial end of it, we use independent distribution hubs. Nutrien and Mosaic and Simplot control what would be 60% of the market. I'm never going to sell to them. They make their own. On my other side of it all is I make my own. We have the other independents, which is the other 40% of the guys, and that's who I sell to.
[audio distortion]
No, they add an elemental sulfur to it called MES15. But it's still a chemical run.
I'm just wondering, [audio distortion]
Yeah, we're OMRI listed. So we're 100% organic on two out of our three products. One product is just a little bit too much rock phosphate, which has too much cadmium. But I do have to wrap up here as my wonderful lady is telling me. So, any final questions?
[audio distortion]
On the veggies, really you can. I do it on my garlic. My neighbors do it on garlic. We are playing with asparagus and man, oh, man. Yeah, it is good stuff. One of our investors/people, a guy named Jeremy down in the south.
Oh.
He does a lot of it on his fruit trees, and he swears by it.
[audio distortion]
What's that?
[audio distortion]
Yeah, one season it starts to change things already. Yep. Anyway, I will end my session at that. Thank you very much.