3 TSX Penny Stocks Under CA$200M Poised for Growth in Critical Minerals and Healthcare Innovation

As global demand for critical minerals and health innovation accelerates, Canada's penny stock market is quietly harboring three undervalued companies positioned to capitalize on these trends. NeoTerrex Minerals (TSXV:NTX), Psyched Wellness (CNSX:PSYC), and Sailfish Royalty (TSXV:FISH) all boast market caps below CA$200 million and strategic exposure to sectors backed by Canadian policy and investor sentiment. Here's why they're worth considering now—before their potential surges in valuation leave investors scrambling.

1. NeoTerrex Minerals (TSXV:NTX): Rare Earths in a Strategic Mining Hub

Market Cap: CA$14.96 million (July 2025)
Key Catalysts:
- Resource Expansion: NeoTerrex's flagship projects—Mount Discovery and Galactic REE—target rare earth elements (REEs), a critical component of clean energy and defense technologies. Canada's recent focus on securing REE supply chains under its Critical Minerals Strategy could fast-track permitting and funding for such projects.
- Financial Resilience: With no debt and a cash runway exceeding one year, NeoTerrex is well-positioned to advance exploration without diluting shareholders.

Why Now?
The company's valuation is a fraction of its peers, yet it holds high-potential assets in a region (Canada's Northwest Territories) with proven mineral wealth. A positive assay result or partnership announcement—common catalysts for junior miners—could trigger a sharp rerating.

2. Psyched Wellness (CNSX:PSYC): Mushroom-Based Health in a Wellness Boom

Market Cap: CA$8.66 million (July 2025)
Key Catalysts:
- Health Trend Momentum: Psyched Wellness produces mushroom-derived supplements, a niche category benefiting from rising demand for natural wellness products. The global mushroom supplement market is projected to grow at 8% CAGR through 2030.
- Balance Sheet Strength: Despite being pre-revenue, its CA$6.7 million in short-term assets far exceeds liabilities (CA$234,900). This liquidity buffer allows it to scale operations without urgent fundraising.

Why Now?
The stock trades at a fraction of its asset value, implying significant upside if it secures regulatory approvals for new product lines or expands distribution. Canada's cannabis market evolution suggests a path for Psyched to leverage similar “wellness-as-a-service” models.

3. Sailfish Royalty (TSXV:FISH): Precious Metals Royalties in a Bull Market

Market Cap: CA$185.49 million (July 2025)
Key Catalysts:
- Revenue-Generating Model: Unlike peers, Sailfish generates consistent cash flow from royalties on projects like Mako Mining's El Golfo and the Spring Valley Gold Project. Its Q1 2025 dividend of US$0.0125/share signals financial health.
- Strategic Acquisitions: The company's recent exercise of a Life of Mine Silver Option at Spring Valley demonstrates its ability to grow royalties without the risks of direct mining.

Why Now?
With a YTD return of 81.48% vs. the S&P/TSX's 9.77%, Sailfish is already outperforming—but its CA$185 million valuation still leaves room for further gains. Canada's Critical Minerals Strategy and rising gold prices could amplify interest in royalty-based plays.

Investment Thesis: Act Before the Surge

All three companies operate in sectors primed for growth: critical minerals, health innovation, and precious metals. Their low market caps mean even modest successes—like a new resource estimate, FDA-like regulatory milestone, or royalty acquisition—could trigger sharp price jumps.

• Risk Factors: Penny stocks are volatile. NeoTerrex's exploration risks, Psyched's pre-revenue status, and Sailfish's reliance on commodity prices require caution.
• Call to Action: Investors seeking exposure to Canada's strategic industries should consider small positions in these names. Their alignment with national policy and undervalued metrics suggest a “buy the dip” strategy could pay off as market recognition grows.

The window to buy these stocks at current valuations is narrowing. As global demand for minerals and wellness solutions climbs, investors who act now may catch the next wave of growth in one of Canada's most promising sectors.

Data as of July 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.