MustGrow Biologics (CSE: MGRO) has been on a high volume tear as of late, with the equity seeing a consistent rise in its valuation. The company hit a new fifty two week high this morning, yet it appears that the market in general knows little about the agricultural biotech firm that is focused on natural science-based biological solutions for high value crops.
As a result, The Deep Dive has assembled one of our classic “three things to know” columns on the early stage food biotech firm to get investors up to date on what MustGrow currently has on the go, and where it is they are headed.
1. MustGrow Is Focused On Replacing Synthetic Solutions
The core focus of that of MustGrow Biologics is the replacement of synthetic solutions with natural biologic solutions in the agricultural industry. Primarily focused on that of high value crops, such as fruits and vegetables as well as cannabis, the firm is centered around developing and commercializing natural, science-based solutions for common agricultural problems.
While synthetic chemicals are being banned globally due to being perceived as unsafe by the general public, MustGrow is taking advantage of the opportunity presented for that of natural bio-pesticides. The company has developed patented technology that utilizes mustard-derived organic compounds within its signature product, which is currently available in a granular format. The product is EPA-approved for use in fruits and vegetables, nuts, turf and ornamentals as a means of destroying soil-borne diseases such as botrytis and fusarium, which are also referred to as bud rot and root rot.
A new liquid formulation of the product has been finalized as well, and has achieved 100% control of these hard-to-kill diseases in related tests. The liquid formulation provides a benefit over that of granule formats due to being able to be used within drip irrigation and spraying equipment. Tests conducted on lowest effective application use-rates have shown great than 95% control when using an application rate as low as 2.5 gallons per acre, demonstrating that the product should be feasible for use in major fruit, vegetable, and broad acre farming operations. The company is currently seeking registration with the EPA for this liquid formulation label.
Current market opportunities for this liquid formulation, known as TerraMG, are stated by MustGrow to include the estimated $4 billion tobacco nematode and disease fumigation industry, as well as the $856 million fruit and vegetable soil fumigation industry.
2. Exclusive Canadian Distribution of Powdery Mildew Treatment For Cannabis
Initially announced in September 2019, MustGrow has gained exclusive access to a product previously approved by Health Canada for the treatment of powdery mildew within cannabis operations. Initially taken off the market at the election of the distributor, the product is current in the process of being re-registered with Health Canada for use within cannabis operations.
Based on the active ingredient known as Streptomyces lydicus, a biological fungicide, the biological product distributed by MustGrow will be known as CannaPM. While a number of products have been approved for combating powdery mildew within the agricultural industry, such as myclobutanil and chlorothalonil, these products are strictly prohibited for use on cannabis plants as a result of the chemicals released upon combustion. Powdery Mildew is currently believed to cost cannabis producers anywhere from $400 – $800 per square foot in lost production costs, providing ample opportunity for an effective product.
The exclusive licensing of this biological product is part of a strategy being implemented by MustGrow to compile a suite of science-based biological products. Products under this suite will be natural or organic biopesticides and biofertilizers geared towards distribution to licensed cannabis producers. The first product under this strategy distributed by MustGrow is known as TP-1000, which provides improved nutrient utilization which supports earlier growth and optimal flowering for plants. The product has demonstrated within testing significant improvements in yield, terpene and THC levels.
3. Anticipated Near Term Product Launches
Finally, MustGrow is expecting the near term launch of at least three products within Canada, two of which are heavily focused on the Canadian licensed cannabis producer industry. The first product, CannaPM, is currently in submission and review with the regulatory agencies to get cannabis re-added to the label. The previously registered product is anticipated to launch in the third quarter of 2020 following regulatory approval.
The second product, known as CannaMG, is the granule format of MustGrow’s mustard-derived product focused on the pre-plant treatment of soil born disease, which will control bud and root rot within cannabis plants. The firm is anticipating regulatory approval on a similar timeline of that of its CannaPM product, with product launch also targeted for the start of the third quarter of 2020.
The final product that MustGrow is targeting as a near term launch, is that of TerraMG. As previously mentioned, the liquid product can be used as a biopesticide for pre-plant treatment of soil borne diseases in fruits, vegetables, turf, ornamentals, tobacco and maybe even potatoes.
FULL DISCLOSURE: MustGrow Biologics Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover MustGrow Biologics Corp on The Deep Dive, with The Deep Dive having full editorial control. Additionally, the author personally holds securities of the company and may buy or sell at any future point in time. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.