MustGrow: Gaining Momentum
MustGrow develops biological agricultural products derived from components of the mustard plant. Around 110 granted and pending patents underpin the company’s innovative strength. The Canadians are pursuing two directions. The biological soil fertility product TerraSante™ is intended to improve soil quality and microbiome activity. For farmers, this is intended to result in higher yields and better harvest quality. The product is already approved for sale in 12 US states. Following supply bottlenecks and high freight costs in the first half of the year, the picture has brightened considerably. The company reported that TerraSante™ revenue reached CAD 0.9 million by mid-August, almost 50% higher than the entire previous year.
The pre-registered biopesticide TerraMG™, by contrast, uses natural active ingredients from mustard to protect against soil-borne nematodes and fungal pathogens. With this, MustGrow is pursuing an ecological alternative to certain synthetic chemical soil treatments. The company is further developing this technology together with partners. A key element is the licensing agreement signed with Bayer at the end of 2023, which covers relevant applications in Europe, the Middle East and Africa. At the end of August, the company reported a major milestone: Bayer paid the Canadians their first development milestone payment of CAD 1.4 million.
Research firm GBC recently set a price target of CAD 2.51 for the shares, which are currently trading around CAD 0.385, implying substantial upside potential. In the analysts’ view, the licensing partnership with Bayer continues to offer significant potential. If the development programme reaches further contractually agreed milestones, MustGrow could receive additional payments. The company itself has cited a range of approximately USD 35 million to USD 40 million.
In GBC’s view, a successful market launch would broaden the revenue base. The company would then be entitled not only to sales-based royalties but also to revenue from the manufacture and supply of the relevant products. Against this backdrop, analysts forecast a major revenue increase and expect revenue of CAD 31.56 million as early as 2028. This compares with a current market capitalisation of CAD 27 million.
Bayer: Growing Signs of an Operational Turnaround in the Agricultural Business
The German company generates half of its group revenue in the Crop Science segment. Sales of seeds, crop protection products and digital solutions offset the prescription medicines and health products divisions. Litigation continues to weigh on the group. However, market participants are also becoming more confident that this difficult chapter can gradually close.
At its strategy update a few weeks ago, Bayer presented new seed and crop protection products. The agricultural division’s free operating cash flow is expected to rise to more than EUR 3 billion by 2029. That is quite a statement. The current figures show slight revenue growth accompanied by disproportionately strong increases in operating profit, reflecting higher-margin revenue and efficiency measures. Nevertheless, free cash flow was in negative territory in the second quarter at EUR 371 million.
The life sciences group will present its third-quarter figures on November 3. More positive news recently emerged about the weedkiller glyphosate. Deutsche Bahn intends to use the product again from next spring, after the company stopped using it in 2023. Analysts see average upside potential of 30% for the stock.
K+S: New Investments as a Basis for Growth
K+S supplies mineral plant nutrients (fertilisers), particularly potash and magnesium products, as well as salt for industry and winter road maintenance. In the second quarter, revenue rose to EUR 978 million, while EBITDA increased from EUR 110 million to EUR 176 million. Higher sales volumes and average prices provided a boost. K+S subsequently raised its EBITDA forecast for the current financial year to EUR 680 to 760 million. The midpoint assumes price levels remain roughly stable in the second half of the year.
High planned investment in the second half of the year will weigh on free cash flow, but the group still expects a mid- to high-double-digit million figure for the full year. The group aims to strengthen its earnings power with two major projects. At Bethune in Canada, potash production is set to grow to 4 million tonnes annually over the long term while also becoming more cost-efficient. In Germany, K+S is investing around EUR 600 million in “Werra 2060” to save energy, reduce residues and tap additional raw material reserves through new processing and mining methods. Initially, the projects tie up capital, but in the long term they could increase competitiveness and reduce dependence on high potash prices.
US President Donald Trump has caused unease in the industry in recent weeks. As neighbouring Canada has fallen out of favour, the United States is looking for alternative sources of potash fertiliser. Trump held out the prospect of a major deal with Belarus. This perceived intensification of competition briefly put pressure on the shares of established suppliers.
In September, K+S reported a bond buyback with a nominal value of EUR 150 million. In the summer, the group issued a EUR 320 million convertible bond. With the current share price at just over EUR 13, analysts see average upside potential of around 20% over the next 12 months. K+S will publish its next quarterly figures on November 10.
Conclusion
MustGrow’s strategy and potential are impressively underscored by the milestone payment from Bayer. GBC’s analysts see enormous upside potential for the stock. Bayer still has to deal with legacy issues, but operationally things are moving in the right direction. K+S is investing in future growth, but remains characteristically exposed to the fertiliser cycle.
Note: MustGrow Biologics has announced an upcoming webcast panel discussion with Bayer AG featuring MustGrow’s Chief Operating Officer, Colin Bletsky and Ralf Glaubitz, Head of Crop Protection Product Team Biologicals at Bayer’s Crop Science division.
The “fireside chat” panel discussion will be broadcast on:
Wednesday, October 28, 2026, at 4:00 pm Eastern Standard Time / 9:00 pm Central European Time
Click here to register:
MustGrow’s Colin Bletsky and Bayer’s Ralf Glaubitz will discuss the global biological agriculture opportunity, the regulatory framework, and the future prospects of their partnership.
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