Target Group Inc.

What they do

Through subsidiary Canary Rx Inc., the company cultivates, processes and distributes cannabis for Canada's medical and adult-use recreational markets from a 44,000 square foot facility in Ontario's Norfolk County, licensed under Health Canada's Cannabis Act. Management is repositioning around wholesale and co-packaging services, with stated potential products including flower and extract vaporizer pods, pre-rolls, K-Cup infused coffee and tea, infused beverages, edibles and topicals. The company states it has no operations, employees or corporate offices in the United States.

Revenue drivers

• Wholesale cannabis (Canada) — The core business: cultivation at the Simcoe facility with revenue generated in the Canadian wholesale cannabis market, including through an investment in JVCo. The 10-K attributes the fiscal 2025 revenue decline primarily to lower revenue overall.
• Co-packaging services — Management describes repositioning around wholesale and co-packaging for consumer-packaged cannabis goods in Canada and internationally, integrating cannabinoid research, analytical testing, product development and manufacturing. No separate revenue figure is disclosed for this service.
• Product manufacturing — Stated product lines include cannabis flower and extract pods for vaporizers, pre-rolls, K-Cup infused coffee and tea pods, infused beverages, edibles and topicals. These are described as planned/current manufacturing outputs; the company does not break out revenue by product.

Recent performance

Annual revenue was $3.9 million in 2025, down from $6.6 million in 2024, and the company reported a net loss of $1.4 million for 2025 versus net income of $160,504 in 2024. Operating cash flow swung to negative $842,425 in 2025 from positive $2.2 million in 2024, and cash fell to $100,410 at December 31, 2025 (excluding restricted cash of $8,390) from $1,869,767 a year earlier. At December 31, 2025 the company reported a working capital deficit of $11,052,097 and an accumulated deficit of $32,306,526, and auditors raised substantial doubt about going-concern status. Quarterly revenue has since increased each period, from $499,650 in the quarter ended September 30, 2025 to $735,190 in December 2025, $879,442 in March 2026 and $1.4 million in June 2026. At June 30, 2026, total assets were $5.7 million against total liabilities of $14.3 million, leaving shareholders' equity of negative $8.7 million, with only $14,006 of cash.

Strategy

The company's stated direction is to emphasize wholesale and co-packaging services for cannabis consumer-packaged goods in Canada and internationally, supported by cannabinoid research, analytical testing, product development and manufacturing. It continues to evaluate opportunities in the United States where legalized by state legislation or tied to rescheduling, but reports no U.S. operations, employees or offices today. Growth has been pursued through acquisitions, notably the 2018 Visava/Canary Rx share exchange that made Canary a wholly owned subsidiary operating the 44,000 square foot Ontario facility. Management states that continuation as a going concern depends on operations generating cashflow, financial support from stockholders, and the ability to raise equity financing and/or complete a business combination. The company also cites an investment in JVCo as part of its entry into the Canadian wholesale market.

Risks

• Going concern — The company's independent auditors raised substantial doubt about its ability to continue as a going concern as of the December 31, 2025 10-K, citing the need for operating cashflow and outside financing.
• Liquidity and capital structure — At June 30, 2026 the company had $14,006 of cash and $14.3 million of liabilities against $5.7 million of assets, producing negative shareholder equity of $8.7 million.
• U.S. federal illegality — The company's risk factors state cannabis remains illegal under U.S. federal law as a Schedule 1 controlled substance, and any change in federal enforcement could adversely affect its ability to possess or cultivate cannabis.
• Related-party dependence — Amounts payable to related parties were $10,361,576 at December 31, 2025, primarily loans from shareholders and related party CLI plus management fees, tying the balance sheet to continued insider support.

Outlook

There is no full-year guidance in the excerpts; management states that continuation as a going concern depends on the Simcoe operations generating cashflow, financial support from stockholders, and the ability to raise equity financing or complete a business combination. The most recent quarterly revenue figures ($1.4 million in the quarter ended June 30, 2026) are higher than the prior three quarters, but the company has not stated that this trend is expected to continue. The 10-K notes the stock moved to the OTC Pink Limited Market under the symbol CBDY effective July 1, 2025.