As we head into the second half of 2025, the Canadian market is navigating a complex landscape shaped by ongoing trade negotiations and potential tariff adjustments. For investors seeking opportunities in smaller or emerging companies, penny stocks—though an older term—remain a compelling area for exploration. These stocks can offer growth potential at lower price points, particularly when backed by strong financial health and solid fundamentals.

Click here to see the full list of 889 stocks from our TSX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

★★★★★☆

PharmaTher Holdings Ltd. is a specialty pharmaceutical company focused on developing and commercializing pharmaceuticals with novel delivery methods to improve patient outcomes, with a market cap of CA$20.80 million.

PharmaTher Holdings Ltd. has not reported any specific revenue segments.

CA$20.8M

PharmaTher Holdings Ltd., with a market cap of CA$20.80 million, remains pre-revenue but is strategically positioned in the ketamine space. The company recently launched KetaVault, a portal offering comprehensive ketamine data to partners, potentially accelerating clinical trials and regulatory submissions. This aligns with the anticipated FDA approval for its ketamine product by August 9, 2025. PharmaTher's financial position shows no debt and sufficient short-term assets to cover liabilities; however, it has less than a year of cash runway if cash flow continues to decline at historical rates. Despite recent losses, these strategic moves could enhance future prospects.

★★★★☆☆

Overview: Progressive Planet Solutions Inc., along with its subsidiaries, focuses on acquiring and exploring mineral properties in Canada and the United States, with a market cap of CA$18.66 million.