Original-Research: MustGrow Biologics Corp. (von GBC AG): Buy

Classification of GBC AG to MustGrow Biologics Corp.

Company Name:	MustGrow Biologics Corp.
ISIN:	CA62822A1030
Reason for the research:	Research Update
Recommendation:	Buy
Target price:	2.51 CAD
Target price on sight of:	31.12.2027
Last rating change:
Analyst:	Matthias Greiffenberger, Cosmin Filker

Bayer Milestone Achieved - Strong TerraSante Demand Remains Supply-Constrained

MustGrow's equity story remains centred on the commercial scaling of TerraSante and the longer-term value potential of its Bayer partnership. The first Bayer development milestone resulted in C$1.36m of high-margin licence revenue in H1 2026 and provides important external validation of the TerraMG technology. Further upside could arise from potential additional milestone payments as the programme advances. If commercial sales commence, MustGrow would also be entitled to royalties and revenue from manufacturing sales.

TerraSante sales were constrained by manufacturing delays rather than insufficient demand. The new production lines in India and Thailand have not yet reached nameplate capacity, resulting in limited product availability. Nevertheless, sales reached approximately C$0.90m by mid-August, around 46% above the level achieved during the whole of 2025. Most volumes were generated from repeat customers, supporting the product's commercial acceptance. The existing facilities offer estimated annual revenue capacity of C$15m to C$25m once fully operational.

Due to the slower production ramp-up, we reduce our FY2026 revenue forecast from C$4.50m to C$3.50m and expect EBITDA of C$-4.58m. We maintain our revenue forecasts of C$14.05m for FY2027 and C$31.56m for FY2028, as the shortfall is primarily related to the timing of product availability. EBITDA is forecast to improve to C$-1.08m in FY2027 and C$8.46m in FY2028 as higher volumes, lower freight costs and operating leverage support profitability.

Based on our updated DCF model, we reduce our price target to C$2.51 from C$2.70 due to the lower FY2026 forecast and the increase in the risk-free rate. The revised target price continues to imply compelling upside from the current trading level. We therefore reiterate our BUY rating.

You can download the research here: 20260924_MustGrow_Update
Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a, 11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Completion: 24.09.2026 (14:30)
First distribution: 28.09.2026 (10:00)