GBC AG initiates coverage of MustGrow Biologics Corp. with a BUY rating, "From mustard seed to scalable biologicals platform"

Augsburg, 7 July 2026 – GBC AG has initiated coverage of MustGrow Biologics Corp. (ISIN: CA62822A1030) and assigns a BUY rating with a target price of CAD 2.70 / EUR 1.66 on a time horizon until 31 December 2027. The research report was prepared by analysts Matthias Greiffenberger and Cosmin Filker.

"From mustard seed to scalable biologicals platform"
MustGrow Biologics Corp. is a Canadian agricultural biologicals company focused on mustard-derived technologies for soil health, crop nutrition and crop protection. In GBC AG’s view, the company is positioned in a structurally attractive market segment benefiting from rising demand for biological solutions, regenerative farming practices and more sustainable alternatives to conventional agricultural chemistry.

The investment case is centered primarily on TerraSante, an already commercialized biofertility and soil amendment product. TerraMG provides an additional longer-term opportunity in biological crop protection. The strategic partnership with Bayer represents, in GBC AG’s view, important external validation of MustGrow’s technology platform and creates additional long-term international market potential.

MustGrow is increasingly focusing its resources on scaling proprietary products. In GBC AG’s view, this focus enhances the strategic clarity of the business model and highlights the importance of market adoption, margin development and operating scalability. For FY 2026e, FY 2027e and FY 2028e, GBC AG forecasts revenues of CAD 4.50m, CAD 14.05m and CAD 31.56m, respectively. At the same time, GBC expects a significant improvement in gross margin quality, driven by the increasing share of proprietary TerraSante revenue, improved contract manufacturing economics and scaling effects.

Matthias Greiffenberger, analyst at GBC AG, comments:
“In our view, MustGrow combines a clearly differentiated mustard-derived product innovation with an attractive and structurally growing market for biological agricultural solutions. TerraSante in particular demonstrates that the technology is no longer merely at the development stage, but is entering commercial scale-up. The decisive factor is that the value proposition for growers is not based on sustainability alone, but also on product quality, soil health, potential yield benefits and a clearly understandable return on investment.”

Based on a DCF valuation, GBC AG derives a target price of CAD 2.70 / EUR 1.66 and initiates coverage with a BUY rating. Key value drivers include the increasing scale-up of TerraSante, the expected improvement in gross margins and operating leverage as commercialization progresses. TerraMG and the Bayer partnership provide additional longer-term upside potential.

The full original research report is available for download in German and English:

German research report:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=9c6961e04ba9dc167dcd69b855e4c116

English research report:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=3d1dcb1ad065fc7fa66fd790e102dda5

About MustGrow Biologics Corp.
MustGrow Biologics Corp. ( ISIN: CA62822A1030 ) is a Canadian agricultural biologicals company developing and commercializing mustard-derived technologies for soil health, crop nutrition and crop protection. The company’s current commercial focus is TerraSante, an already launched biofertility and soil amendment product. In addition, TerraMG offers longer-term potential in biological crop protection. MustGrow is positioned in a structurally growing market for biological and more sustainable agricultural inputs.

Risk notice:
This announcement is for information purposes only and does not constitute financial analysis, investment advice, an investment recommendation or an invitation to buy or sell financial instruments. Investments in shares are generally associated with risks, including the possible total loss of the invested capital. Only the full research report is authoritative; it contains the complete disclaimer, risk notices and further legal information.

Disclosure of potential conflicts of interest pursuant to § 85 WpHG and Art. 20 MAR:
GBC AG and the responsible analysts point out that the following potential conflicts of interest may exist at the time of publication: 5a, 11. Further details can be found in the full research report and at: www.gbc-ag.de/de/Offenlegung

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