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Willow Biosciences (TSE:WLLW)
TSX:WLLW

Willow Biosciences Inc (WLLW) AI Stock Analysis

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Willow Biosciences Inc

(TSX:WLLW)

Rating:52Neutral
Price Target:
$0.50
▲(56.25%Upside)
Willow Biosciences Inc, now transitioning to Atlas Energy Corp, is undergoing significant changes. While the company's recapitalization and strategic rebranding are positive indicators for future growth, its current financial instability remains a major concern. Technical indicators suggest some short-term bullish momentum, but valuation challenges persist due to negative earnings.

Willow Biosciences Inc (WLLW) vs. iShares MSCI Canada ETF (EWC)

Willow Biosciences Inc Business Overview & Revenue Model

Company DescriptionWillow Biosciences Inc. is a biotechnology company that operates in the field of synthetic biology. The company focuses on the production of high-purity, plant-derived compounds that are used in various industries including pharmaceuticals, consumer packaged goods, and personal care products. Using advanced biosynthetic methods, Willow Biosciences aims to provide sustainable and cost-effective alternatives to traditional production methods.
How the Company Makes MoneyWillow Biosciences Inc. generates revenue primarily through the development and commercialization of biosynthetically produced cannabinoids. The company uses its proprietary yeast-based fermentation platform to produce cannabinoids at scale, offering a sustainable and consistent supply of these compounds. Revenue streams include the sale of cannabinoids to pharmaceutical companies, consumer product manufacturers, and other industries that utilize these compounds in their products. Additionally, Willow Biosciences may engage in strategic partnerships and licensing agreements to further monetize its proprietary technology and expand its market reach.

Willow Biosciences Inc Financial Statement Overview

Summary
Despite strong revenue growth of 297.8%, Willow Biosciences Inc faces significant financial challenges, including sustained losses, negative equity, and liquidity constraints. The company's financials indicate high risk and instability, overshadowing operational improvements.
Income Statement
32
Negative
Willow Biosciences Inc has shown a significant increase in revenue from $1,172,000 in 2023 to $4,662,000 in 2024, representing a strong revenue growth rate of 297.8%. However, the company continues to experience substantial losses reflected in negative net profit margins and EBIT margins. The recent gross profit margin of 100% in 2024 is an improvement, indicating better cost management, though overall profitability remains a major concern.
Balance Sheet
25
Negative
The balance sheet highlights a concerning negative stockholders' equity of -$505,000 in 2024, a sharp decline from $3,436,000 in 2023, indicating solvency issues. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio has shifted unfavorably. These factors point to high financial risk and instability.
Cash Flow
30
Negative
Operating cash flow remains negative, with a slight improvement in free cash flow from -$11,539,000 in 2023 to -$3,743,000 in 2024. Despite this improvement, the free cash flow to net income ratio remains unfavorable, highlighting ongoing liquidity challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.66M1.17M821.00K133.00K10.00K
Gross Profit3.28M-659.00K-6.65M-11.40M10.00K
EBITDA-4.54M-11.06M-12.09M-2.92M-30.72M
Net Income-6.19M-13.03M-14.81M-6.17M-33.99M
Balance Sheet
Total Assets2.49M6.67M18.15M35.02M21.86M
Cash, Cash Equivalents and Short-Term Investments353.00K3.17M15.03M30.12M15.89M
Total Debt1.97M2.16M664.00K802.00K869.00K
Total Liabilities2.99M3.24M1.77M5.33M22.42M
Stockholders Equity-505.00K3.44M16.37M29.68M-559.00K
Cash Flow
Free Cash Flow-3.74M-11.54M-14.54M-19.99M-13.78M
Operating Cash Flow-3.72M-10.92M-13.86M-18.23M-12.78M
Investing Cash Flow78.00K3.46M-4.55M-1.67M-837.00K
Financing Cash Flow786.00K-318.00K-723.00K34.13M9.89M

Willow Biosciences Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.15
Positive
100DMA
0.16
Positive
200DMA
0.30
Negative
Market Momentum
MACD
0.03
Negative
RSI
58.75
Neutral
STOCH
56.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WLLW, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.15, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 56.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WLLW.

Willow Biosciences Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$9.27M-971.43%571.23%64.25%
49
Neutral
AU$2.50B4.42-64.25%2.77%36.51%13.14%
39
Underperform
C$1.76M62.01%35.35%31.85%
20
Underperform
$913.63K49.80%-100.00%-42.50%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WLLW
Willow Biosciences Inc
0.26
-0.34
-56.67%
TSE:CVGR
City View Green Holdings
0.02
-0.08
-79.80%
TSE:OVAT
Ovation Science
0.05
0.02
42.86%

Willow Biosciences Inc Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Atlas Energy Corp. Completes Transformative Recapitalization
Positive
Jun 19, 2025

Atlas Energy Corp., formerly Willow Biosciences Inc., has completed a transformative recapitalization, including a $30 million private placement, a new management team, and a name change. The company plans to leverage its strong shareholder base to explore high-quality royalty and streaming opportunities globally, marking a significant milestone in its mission to provide innovative capital solutions in the energy industry.

Delistings and Listing ChangesPrivate Placements and FinancingStock Split
Willow Biosciences Inc. Receives Conditional TSXV Listing Approval
Neutral
Jun 17, 2025

Willow Biosciences Inc. has received conditional acceptance to list its common shares on the TSX Venture Exchange (TSXV) under the TSXV Sandbox Program. This transition involves a name change to ‘Atlas Energy Corp.’ and a share consolidation, with trading expected to commence on June 24, 2025. The company aims to meet specific exit conditions within 12 months, including completing a $30 million private placement and investing in qualifying projects, to maintain its listing status.

Delistings and Listing ChangesExecutive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Willow Biosciences to Transform into Atlas Energy Corp. with New Strategic Focus
Neutral
May 12, 2025

Willow Biosciences Inc. announced a significant restructuring plan involving a C$30 million private placement, a new executive team, and a rebranding to ‘Atlas Energy Corp.’ The company aims to transition into an international upstream royalty and streaming company focused on oil and gas transactions, with plans to list on the TSX Venture Exchange under the new name and symbol. This strategic shift marks a major pivot from its previous operations, potentially impacting its market positioning and stakeholder interests.

Private Placements and FinancingShareholder Meetings
Willow Biosciences Secures $30 Million in Recapitalization Effort
Positive
May 8, 2025

Willow Biosciences Inc. has secured $30 million in firm commitments for a non-brokered private placement, exceeding initial demand. This recapitalization effort is contingent on certain conditions, including TSX Venture Exchange approval and a share consolidation. The company plans to hold a special shareholder meeting to approve these changes, positioning itself for future growth in the oil and gas sector.

Delistings and Listing ChangesExecutive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Willow Biosciences Announces Recapitalization and Rebranding to Atlas Energy Corp.
Positive
May 7, 2025

Willow Biosciences Inc. has announced a $30 million recapitalization financing, along with a reorganization that includes a new executive team and board of directors, as it transitions to Atlas Energy Corp. The company aims to list on the TSX Venture Exchange and will focus on international upstream oil and gas royalty and streaming opportunities. The new leadership team, with extensive experience in the industry, is expected to drive growth and value creation, leveraging their history of successful ventures in the oil and gas sector.

Executive/Board ChangesM&A Transactions
Willow Biosciences Sells Subsidiary, Implements Management Changes
Positive
Apr 30, 2025

Willow Biosciences Inc. has completed the sale of its operating subsidiary, Epimeron USA, Inc., to Mycofeast Ltd.’s U.S. subsidiary for $2.76 million. This transaction, which includes management changes, will allow Willow to reduce debt and explore future opportunities, potentially enhancing shareholder value.

Executive/Board ChangesM&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Willow Biosciences Reports Key Shareholder Meeting Outcomes
Positive
Apr 26, 2025

Willow Biosciences Inc. announced the results of its annual general and special meeting, where shareholders approved several key resolutions, including the election of five directors and the appointment of KPMG LLP as the company’s auditor. Additionally, shareholders authorized the sale of Epimeron USA, Inc., and a potential name change for the corporation. These decisions reflect strategic moves to streamline operations and potentially rebrand, indicating a focus on future growth and adaptation in the industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025