TSX Penny Stocks: 3 Promising Picks With Market Caps Under CA$400M

September's retail sales data in Canada highlighted a slowdown in consumer spending, partly due to a decline in the auto sector and slower population growth. Despite these challenges, the potential for improvement remains as interest-rate cuts and fiscal stimulus are anticipated to take effect over time. In this context, penny stocks—often smaller or newer companies with strong financials—offer an intriguing mix of affordability and growth potential.

Top 10 Penny Stocks In Canada

Click here to see the full list of 402 stocks from our TSX Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Anaergia (TSX:ANRG)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Anaergia Inc., along with its subsidiaries, offers renewable energy generation and waste-to-resource conversion solutions across various regions including Italy, North America, Europe, the Middle East and Africa, and the Asia Pacific, with a market cap of CA$365.94 million.

Operations: The company's revenue is primarily derived from three segments: O&M Services generating CA$20.65 million, Capital Sales contributing CA$108.54 million, and Build, Own, and Operate bringing in CA$13.37 million.

Market Cap: CA$365.94M

Anaergia Inc. has recently secured a significant CA$43.8 million contract for a renewable energy project in San Diego, highlighting its strategic growth in the waste-to-energy sector. Despite this positive development, the company faces legal challenges with a class action lawsuit alleging market misrepresentations. Financially, Anaergia's short-term assets exceed long-term liabilities but fall short of covering short-term liabilities, and while it remains unprofitable with negative return on equity, it maintains a cash runway exceeding three years due to positive free cash flow. Revenue is expected to grow substantially at 22.25% annually despite high net debt levels and board inexperience concerns.

• Take a closer look at Anaergia's potential here in our financial health report.
• Learn about Anaergia's future growth trajectory here.

VerticalScope Holdings (TSX:FORA)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: VerticalScope Holdings Inc. is a technology company that operates a cloud-based digital community platform for online enthusiast communities across the United States, Canada, the United Kingdom, and internationally, with a market cap of CA$66.89 million.

Operations: The company's revenue is primarily derived from its operations in the United States ($49.67 million), Canada ($6.30 million), and the United Kingdom ($1.75 million).

Market Cap: CA$66.89M

VerticalScope Holdings Inc. is navigating financial challenges, with recent earnings showing a decline in sales to US$14.69 million for Q3 2025 and a net loss of US$0.42 million, compared to the previous year's profit. Despite these setbacks, the company maintains over three years of cash runway due to positive free cash flow growth and has improved its financial position from negative shareholder equity five years ago. However, it remains unprofitable with short-term assets not covering long-term liabilities and a high net debt-to-equity ratio of 41.5%. The management team is experienced, averaging 6.8 years in tenure.

• Click to explore a detailed breakdown of our findings in VerticalScope Holdings' financial health report.
• Evaluate VerticalScope Holdings' prospects by accessing our earnings growth report.

Greenheart Gold (TSXV:GHRT)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Greenheart Gold Inc. is a mineral exploration company operating in Guyana and Suriname with a market cap of CA$137.16 million.

Operations: Greenheart Gold Inc. has not reported any specific revenue segments.

Market Cap: CA$137.16M

Greenheart Gold Inc., with a market cap of CA$137.16 million, remains pre-revenue and unprofitable, reflecting its status as a mineral exploration company. Despite the absence of debt and stable shareholder dilution, challenges persist due to high share price volatility and an inexperienced management team. Recent efforts include significant drilling activities at the Majorodam project in Suriname, revealing promising gold mineralization zones but also highlighting limitations at other sites like Gold Hill in Guyana. The company's strategic focus involves rapidly assessing projects for viability within a tight timeframe to optimize exploration outcomes efficiently.

• Unlock comprehensive insights into our analysis of Greenheart Gold stock in this financial health report.
• Understand Greenheart Gold's track record by examining our performance history report.

Taking Advantage

• Take a closer look at our TSX Penny Stocks list of 402 companies by clicking here.
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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.

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