Noble Capital Markets analysts have maintained their ‘Market Perform’ rating on MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) following the company’s announcement of a proposed equity financing, citing continued commercial progress alongside near-term execution considerations.
MustGrow said it plans to raise up to $2 million through a non-brokered private placement of up to 4 million units priced at $0.50 per unit. Each unit will include one common share and one common share purchase warrant, with each whole warrant exercisable for 60 months at an exercise price of $0.70 per share.
The offering is expected to close on or around January 22, 2026, with the possibility of multiple tranches, and a final closing no later than February 22, 2026.
According to the analysts, the company intends to use the net proceeds for inventory production of its mustard-derived organic biofertility product TerraSante, inventory for agricultural products sold through its Canadian distribution platform NexusBioAg, as well as working capital and general corporate purposes. They noted that MustGrow previously ran out of TerraSante product in the second and third quarters of last year as demand exceeded management’s initial forecasts.
The analysts also pointed to ongoing positive field results for TerraSante. In Washington State, a farming customer reported consistent improvements in potato yield, size, and quality at an application rate of 11 pounds per acre. With those gains, the farmer estimated an approximate US$5,000 increase in value per acre at a cost of about US$180 per acre for TerraSante.
Additional field work in Idaho has shown benefits to soil health and potato crops when TerraSante is used within an established grower production program.
“We believe a 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,” the analysts concluded.