The Big Read

After high-flying IPO, agtech darling Farmers Edge struggles as languishing penny stock

CALGARY— When it debuted on the Toronto Stock Exchange in early 2021, Farmers Edge seemed rooted in fertile ground. Canada’s preeminent precision-farming company, which sells software to help farmers better run their operations, surged 18 per cent after the IPO, rising beyond their $17 offer price on the promise of cutting-edge technology and ambitious growth plans. 

But just 18 months later, the Winnipeg-based company is floundering. It has burned through the entire $125 million it raised from the IPO, and continues to hemorrhage cash at an alarming rate. Despite a series of acquisitions, analysts are now questioning whether the company will ever turn a profit. A former insider suggests the company has suffered from losing focus on the farmers it’s supposed to serve. Investor doubts have sent its stock plummeting to around $0.70 per share today, evaporating hundreds of millions in market capitalization and leaving observers to question its long-term survival. 

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