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  5. MGRO: Hi-For some reason this company is in your database as being listed on the CNX exchange. [MustGrow Biologics Corp - Ordinary Shares]
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Q: Hi-For some reason this company is in your database as being listed on the CNX exchange. It should be the TSX Venture I believe. As well, could you let me know what you think of it?

Dave in Montreal.
Asked by DAVE on February 09, 2024
5i Research Answer:

Yes; MGRO is on Venture and the error comes from our third party data provider. It is very small at $69M market cap, and down 63% in a year, so needs to be considered very high risk. It has no reported revenue, losses and negative cash flow. It has $4M cash but is going to need more capital. Insiders own 12% and have been recent buyers. It has decent technoloy and has won some partnerships, including with Bayer last year. But without revenue it is a tough call. It needs to continue to sign partnerships and prove its technology can actually be commercialized. Its solution makes sense, but at some point it needs to make money. In situations like this, there is usually lots of time to buy, and we would prefer to pay more when cash flow at least is positive. We do not see it as a bad company, just too early for us.