As trade tensions ease with new agreements between the U.S. and its trading partners, including the U.K., and talks set to begin with China, financial markets have shown positive momentum. Amid these developments, investors are increasingly looking at penny stocks for potential growth opportunities in smaller or newer companies. Although the term "penny stocks" may seem outdated, these investments can still offer significant upside when backed by strong financials and sound fundamentals.
Overview: Cannabix Technologies Inc. is a technology company that develops marijuana and alcohol breathalyzers for employers, law enforcement, workplaces, and laboratories in the United States, with a market cap of CA$71.39 million.
Operations: Cannabix Technologies Inc. has not reported any specific revenue segments.
Market Cap: CA$71.39M
Cannabix Technologies Inc., with a market cap of CA$71.39 million, is pre-revenue and unprofitable but shows potential through strategic developments. The company recently secured its first international distribution agreement for its BreathLogix alcohol breathalyzers in Australia, New Zealand, and the Pacific Islands. Additionally, it achieved U.S. regulatory approval for its BreathLogix Workplace Series alcohol devices, opening doors to the U.S. market. Despite a negative return on equity and ongoing losses, Cannabix remains debt-free with sufficient cash runway for over a year and has reduced losses by 24.8% annually over five years while maintaining stable volatility.
Overview: Empress Royalty Corp. focuses on creating and investing in a portfolio of precious metal royalty and streaming interests in Canada, with a market cap of CA$59.29 million.
Operations: Empress Royalty Corp. does not report distinct revenue segments, focusing instead on its portfolio of precious metal royalty and streaming interests.
Market Cap: CA$59.29M
Empress Royalty Corp., with a market cap of CA$59.29 million, has transitioned from losses to profitability, reporting a net income of US$1.01 million for 2024 and US$0.44 million for Q1 2025. Despite an experienced management team and board, concerns remain about its ability to continue as a going concern, as noted by its auditor. The company trades significantly below estimated fair value and maintains satisfactory debt levels with short-term assets covering liabilities. Recent revenue guidance indicates growth driven by increased production from its silver and gold streams, yet interest coverage remains low at 2.6 times EBIT.
Overview: Nickel 28 Capital Corp. is a base metals company with a market capitalization of CA$54.79 million.
Operations: Nickel 28 Capital Corp. has not reported any specific revenue segments.
Market Cap: CA$54.79M
Nickel 28 Capital Corp., with a market cap of CA$54.79 million, is pre-revenue and currently unprofitable, facing challenges such as insufficient short-term assets to cover liabilities. However, it has a satisfactory net debt to equity ratio of 33.1% and has reduced its debt significantly over the past five years. Recent production results indicate decreased output compared to last year, but the company successfully resumed full production at its Ramu Nickel-Cobalt Mine after resolving mechanical issues earlier this year. Despite an inexperienced board and management team, shareholders have not faced significant dilution recently.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CNSX:BLO TSXV:EMPR and TSXV:NKL.
This article was originally published by Simply Wall St.
