MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) has secured approval for its mustard-based biofertility product TerraSante in a sixth state, with analysts at Noble Capital Markets expecting more approvals to come sooner rather than later.
The company this week announced it has secured registration approval for TerraSante from the Florida Department of Agriculture and Consumer Services.
Florida is the latest state to approve the company’s product alongside Arizona, Idaho, California, Oregon and Washington.
The Florida market opportunity is substantial, with about 47,300 farms over 9.7 million acres. It ranked first in 2022 in value of the production of bell peppers, Valencia oranges, grapefruit, sugarcane, fresh market tomatoes, and watermelons, analysts noted.
“The state adds plenty of opportunity to MustGrow's expanding pipeline and we expect more states to be added in the future,” they wrote.
With Florida on MustGrow’s approval list, they see management looking to the East Coast for additional approvals.
“Pennsylvania, we expect, will be next on the priority list as management is wanting to achieve its 'U' shape in the United States,” they wrote. “We expect an announcement of the approval sooner rather than later, as the company builds its organic certifications.”
Noble’s analysts repeated their ‘Market Perform’ rating on MustGrow, which closed at US$0.70 on Wednesday.
“We believe substantial opportunity exists for natural alternatives in the company's targeted end markets, such as preplant soil fumigation, bioherbicides, postharvest food preservation, soil amendment, and biofertility,” they wrote.
“We believe the company's partnerships with key companies in the space will prove fruitful, both in validating the technology but also in assisting MustGrow in the regulatory approval process.”