Investors with a keen eye for potential high-reward opportunities often explore the world of micro-cap stocks. Micro caps refer to companies with a market capitalization under $50 million. While these investments come with high risks, they also carry the potential for significant returns if you pick the right companies. The businesses highlighted in this article are either profitable or on the verge of profitability, and they stand out as leaders in their respective niches. Coincidentally (or perhaps not), all three companies are based in Canada. With Canada experiencing a tough economic period recently, I think it’s now ripe with opportunities. As the country looks poised for a turnaround, particularly in a post-Trudeau era, these companies are well-positioned to benefit. So, here are our top 3 micro caps stocks to watch in 2025:
1. Avant Brands Inc. (TSX: AVNT)
Overview: Avant Brands is a premium cannabis producer, base in Kelowna (British Columbia, Canada) known for its high-quality, small-batch cannabis products. The company caters to a discerning clientele and has established itself as a strong player in the Canadian cannabis market.
Key Metrics:
- Revenue (Last Reported): CAD $9.6 million (Q3 2024), which extrapolates to $38.4m/year!
- Market Cap: CAD $~12 million (!)
- Growth: 27% year-over-year revenue growth in the last quarter
Reasons to Be Bullish in 2025:
- Avant Brands has focused on profitability by cutting costs and increasing operating efficiency. They are well on their way to succeed and become one of the only cannabis producer to be profitable in Canada.
- Its premium product line is positioned to capitalize on the growing demand for high-quality cannabis as markets mature. They regularly win prices for the best products in Canada.
- International expansion opportunities as cannabis legalization spreads globally (in the last quarter, 53% of their revenues came from international sales – in countries like Australia, Germany and Israel)
2. Biorem Inc. (TSX-V: BRM)
Overview: Biorem is a clean technology company specializing in air emissions control systems. Its solutions are widely used in municipal, industrial, and commercial applications to reduce harmful pollutants and odors. The demand for this type of services will only grow in the future.
Key Metrics:
- Revenue (Last Reported): CAD $14.9 million (Q3 2024) – annual run rate of close to $60 million
- Market Cap: CAD $~33 million
- Growth: Revenues grew more than 100% year over year! And the company has a record-high backlog of $58 million, indicating strong future revenue potential
Reasons to Be Bullish in 2025:
- Increasing global focus on environmental regulations creates a robust demand for Biorem’s solutions.
- The company’s record backlog demonstrates strong sales momentum and revenue visibility.
- Biorem is expanding its geographic footprint, including growth in emerging markets where air quality concerns are critical (for example they recently signed a $7m contract in the middle east).
3. Gatekeeper Systems (TSXV: GSI)
What They Do:
Gatekeeper Systems provides video and data solutions for public transportation and school buses. Their products enhance safety and operational efficiency through advanced surveillance and analytics.
Key Metrics:
- Latest Revenue: CAD $38 million in the last fiscal year (vs 28m in the year before).
- Market Cap: Approximately CAD $52 million.
- Growth: 36% year-over-year revenue increase.
Why Be Bullish in 2025:
- Growing concerns around public safety and security are driving demand for Gatekeeper’s solutions.
- The company’s innovative technology, including AI-powered analytics, positions it as a leader in its niche.
- Expansion into new markets, including urban transit systems, presents significant growth potential.
Conclusion
Micro-cap stocks like Avant Brands, Biorem, and Gatekeeper Systems demonstrate how small, innovative companies can carve out niches and thrive in challenging markets. These three businesses are not only navigating current headwinds but are positioned to capitalize on emerging opportunities in 2025. While micro-cap investing carries risks, these companies’ strong fundamentals and growth potential make them compelling picks for those with a high-risk appetite.
This article is not financial advice, so please do you own due diligence before buying stocks!
This was “Top 3 Micro Caps Stocks to Watch in 2025”. Did you like it? Tell us!
