MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) this week announced the signing of a five-year exclusive distribution agreement with Adjuvants Plus, a move welcomed by analysts at Noble Capital Markets.
Per the agreement, MustGrow will distribute Adjuvants’ product line across Canada through NexusBioAg. The company also has a first right of refusal for the distribution of Adjuvants’ product line in the United States.
Noble analysts highlighted that Adjuvants’ products being introduced in Canada complement MustGrow’s offering.
“Adjuvants' patented Clonostachys rosea, a fungus that provides plant health and protection benefits, is in both products, offering an abundance of advantages for various crops in North America, such as corn, soybeans, pulses, canola, and fruits and vegetables,” they wrote in a note to clients.
“In our view, products such as EndoFine and EndoGuard complement MustGrow's product line, as both lines target similar crops while offering health and protection benefits.”
They also expressed optimism about the country’s expansion into the US following its launch of Adjuvants’ products in the Canadian market for the 2025 crop year.
It is set to start the Bioadvantage Trials (BAT) program in the US on fruits and vegetables targeting California, with distribution in the US to possibly follow in 2026.
“Adjuvants' fungus has already been tested on various crops in Nexus's BAT program in Canada with increased yields, giving us confidence for potential success in the US,” they wrote.
The analysts repeated their ‘Market Perform’ rating on MustGrow, which traded hands up almost 3% at C$1.40 on Wednesday afternoon.
“The NexusBioAg acquisition provides MustGrow with an experienced sales team that can be leveraged for NexusBioAg's and MustGrow's products,” they wrote.
“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.