MustGrow Announces Record Q1-2025 Results: $3.8 Million Revenue, 14.3% Gross Profit Margin, $4.4 Million in Cash and Inventory

Rhea-AI Summary

MustGrow Biologics reported strong Q1-2025 financial results, marking its first full quarter of revenue following the NexusBioAg acquisition. The company achieved $3.8 million in sales revenue compared to zero in Q1-2024, with a gross profit margin of 14.3% ($541,221). Financial position shows $2.0 million in cash and $2.4 million in inventory. The quarter saw a net loss of $1.6 million ($0.03 per share). MustGrow expanded its product portfolio through its NexusBioAg platform, securing a five-year exclusive distribution agreement with Adjuvants Plus Inc. and adding three new biological solutions: EZ-Gro Max, EZ-Gro Cyto, and Rootella® mycorrhizal inoculants. The company focuses on growing both its Canadian distribution business and TerraSante™ biofertility sales in the U.S.

Positive

• First-ever quarterly revenue of $3.8 million, up from zero in Q1-2024
• Healthy gross profit margin of 14.3% ($541,221)
• Strong liquidity position with $4.4 million in combined cash and inventory
• Secured new product distribution agreements, including 5-year exclusive deal with Adjuvants Plus
• Added three new biological solutions to product portfolio

Negative

• Net loss of $1.6 million for the quarter
• Negative earnings per share of $0.03

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Saskatoon, Saskatchewan--(Newsfile Corp. - May 27, 2025) - MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) (the "Company" or "MustGrow"), a leading provider of biological and regenerative agriculture solutions, is pleased to announce its operating and financial results for the three months ended March 31, 2025. For complete details, please refer to the Q1-2025 Condensed Interim Financial Statements and associated Management's Discussion and Analysis, available on SEDAR+: www.sedarplus.ca or on the Company's website: www.mustgrow.ca.

Key Financial Highlights:

• Sales revenue of $3.8 million was recorded in Q1-2025 vs. zero in Q1-2024
• Gross profit of $541,221 (14.3% gross profit margin) in Q1-2025⁽¹⁾
• Cash and equivalents on hand as at March 31, 2025 was $2.0 million with Inventory of $2.4 million
• Net loss for the three-month period ended March 31, 2025 was $1.6 million and the net loss per share was $0.03 (basic) for the same period

"Our 2025 first quarter marked a pivotal milestone for MustGrow, reflecting the first full quarter of revenue since the acquisition of the NexusBioAg sales and distribution business on December 31, 2024," stated Corey Giasson, President and CEO of MustGrow. "$3.8 million is a meaningful revenue figure for us, and with additional products already secured for the NexusBioAg distribution platform and increasing commercial farmer interest in our TerraSante^TM U.S. biofertility product, we are accelerating our mission to improve the global food system through sustainable production solutions."

The Company continues to focus on capital allocation that generates revenue and revenue growth of both its NexusBioAg Canadian sales and distribution business and TerraSante^TM biofertility sales in the United States.

In the first quarter, MustGrow secured access to several additional agriculture products through its NexusBioAg sales and distribution platform in Canada, including a five-year exclusive distribution agreement with Adjuvants Plus Inc. (a Canadian regenerative agriculture company) and the addition of three new biological solutions to its product lines designed to enhance crop health, boost yield potential, and improve environmental resilience: EZ-Gro Max, EZ-Gro Cyto, and Rootella® mycorrhizal inoculants. MustGrow is continually working on securing new and meaningful products for Canadian farmers. More information is available on the NexusBioAg website: nexusbioag.com.

Notes:

⁽¹⁾ Gross margin is a non-IFRS financial measure. This ratio expresses gross profit as a percentage of revenue for a given period. It assists in explaining the Company's results from period to period and measuring profitability. This ratio is calculated by dividing gross profit for a period by the corresponding revenue for the period. There is no directly comparable IFRS measure.

About MustGrow

MustGrow Biologics Corp. is a fully-integrated provider of innovative biological and regenerative agriculture solutions designed to support sustainable farming. The Company's proprietary and third-party product lines offer eco-friendly alternatives to restricted or banned synthetic chemicals and fertilizers. In North America, MustGrow offers a portfolio of third-party crop nutrition solutions, including micronutrients, nitrogen stabilizers, biostimulants, adjuvants and foliar products. These products are synergistically distributed alongside MustGrow's wholly-owned proprietary products and technologies that are derived from mustard and developed into organic biocontrol and biofertility products to help replace banned or restricted synthetic chemicals and fertilizers. Outside of North America, MustGrow is focused on collaborating with agriculture companies, such as Bayer AG in Europe, the Middle East and Africa, to commercialize MustGrow's wholly-owned proprietary products and technologies. The Company is dedicated to driving shareholder value through the commercialization and expansion of its intellectual property portfolio of approximately 112 patents that are currently issued and pending, and the sales and distribution of its proprietary and third-party product lines through NexusBioAg. MustGrow is a publicly traded company (TSXV-MGRO) and has approximately 52.4 million common shares issued and outstanding and 59.4 million shares fully diluted. For further details, please visit www.mustgrow.ca.

Contact Information

Corey Giasson
Director & CEO
Phone: +1-306-668-2652
info@mustgrow.ca

MustGrow Forward-Looking Statements

Certain statements included in this news release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow. Important factors that could cause MustGrow's actual results and financial condition to differ materially from those indicated in the forward-looking statements include: the receipt of final approval by the TSXV and those risks described in more detail in MustGrow's Annual Information Form for the year ended December 31, 2024 and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.

Neither the TSXV, nor their Regulation Services Provider (as that term is defined in the policies of the TSXV), nor the OTC Markets has approved the contents of this release or accepts responsibility for the adequacy or accuracy of this release.

© 2025 MustGrow Biologics Corp. All rights reserved.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253561

FAQ

What was MustGrow's (MGROF) revenue in Q1 2025?

MustGrow reported revenue of $3.8 million in Q1 2025, compared to zero revenue in Q1 2024, marking their first full quarter of revenue since acquiring NexusBioAg.

What was MustGrow's (MGROF) profit margin in Q1 2025?

MustGrow achieved a gross profit margin of 14.3%, generating $541,221 in gross profit for Q1 2025.

How much cash and inventory does MustGrow (MGROF) have as of Q1 2025?

As of March 31, 2025, MustGrow had $2.0 million in cash and equivalents, plus $2.4 million in inventory, totaling $4.4 million.

What new products did MustGrow (MGROF) add to its portfolio in Q1 2025?

MustGrow added three new biological solutions: EZ-Gro Max, EZ-Gro Cyto, and Rootella® mycorrhizal inoculants, and secured a five-year exclusive distribution agreement with Adjuvants Plus Inc.

What was MustGrow's (MGROF) net loss in Q1 2025?

MustGrow reported a net loss of $1.6 million, or $0.03 per share, for the first quarter of 2025.