Company Description

TX Rail Products is a specialty distributor of rail components serving the coal mining, tunneling, and short-line railroad industries, operating out of Ashland, Kentucky. The company was built by CEO Buck Shrewsbury, who took over a struggling shell company in 2008 and pivoted it into rail distribution in 2012 after partnering with a 30-year industry veteran. Today, TXRP supplies rail, turnouts, mine ties, and related accessories to customers across eastern Kentucky, Ohio, West Virginia, Pennsylvania, and Alabama.

The business model is operationally disciplined: as a reseller rather than a manufacturer, TXRP competes on speed and reliability rather than product differentiation. While their only significant competitor, Jenmar — a multi-billion-dollar mining supply conglomerate — takes 1 to 2 weeks to deliver, TXRP guarantees delivery within 3 days, often next-day. This advantage has proven durable: when Jenmar recently attempted to undercut TXRP on pricing to recapture a key customer, the customer refused to switch. Revenue has grown from $4M in 2022 to $8M in 2024, with management projecting $12 to $14M in 2025, entirely self-funded through reinvested profits with no outside capital raised and no dilution.

The company’s next strategic move is vertical integration into turnout manufacturing, a product currently sourced exclusively from Jenmar following their acquisition of Ohio Valley Track, the only turnout manufacturer east of the Mississippi. Within 4 to 6 months, TXRP plans to begin manufacturing turnouts in-house by sourcing components from China at a fraction of Jenmar’s cost, even after tariffs. In parallel, tunneling contractors are emerging as an early growth opportunity. They use the same rail components as coal mines, and TXRP has already secured a $500K purchase order with active projects in New Hampshire, Houston, Louisville, and Indianapolis.

Positive Takeaways

• Revenue doubled in two years ($4M to $8M), with $12 to $14M projected for 2025, funded entirely from reinvested profits with no debt raised and no dilution

• Lean cost structure: 7 employees, $3K per month in rent, and a $4.6M tax loss carryforward providing roughly two years of federal tax shelter

• Service advantage has held under direct pricing pressure: 3-day guaranteed delivery versus 1 to 2 weeks from Jenmar, and a key customer rejected Jenmar’s attempt to win them back on price

• Turnout manufacturing coming in-house within 4 to 6 months, with Chinese-sourced components priced at roughly one-third of what Jenmar currently charges, even with tariffs applied

• Entering turnout manufacturing opens a path to customers currently buying from Jenmar who are not yet in TXRP’s customer base, with cross-sell potential across their full product line

• Tunneling contractors represent an adjacent opportunity that requires no new inventory, same products, a new customer type, in a global market worth $27 to $30B growing at roughly 7%

• Minimal debt: a $2M bank credit line and $2M owed to the CEO personally at zero interest

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Cautious Takeaways

• Growth is inventory-constrained by design. Management acknowledges that more inventory would enable faster expansion, but the company is not actively seeking outside capital to accelerate

• Key-person risk is meaningful: CEO Buck Shrewsbury is 81 years old and no succession plan was discussed

• Revenue is heavily concentrated in the coal mining industry, which carries long-term secular headwinds despite near-term demand and current political tailwinds

• Turnout manufacturing is unproven at this stage, with execution risk on timeline, quality control, and customer adoption

• Tariff exposure on Chinese-sourced components is real. The rate recently moved from 105% to 75%, and further changes could compress margins

• No long-term contracts. Customers operate on purchase orders with 90-day price guarantees, which limits forward revenue visibility

• Tunneling is promising but early. A single $500K order does not yet constitute a repeatable revenue stream

• A team of 7 employees may constrain operational capacity as revenue scales toward $12 to $14M

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Company Description

Luminar Media Group, filing to rebrand as Fortune Corp (ticker: FRTU), is a financial technology holding company operating in the revenue-based finance space, serving underbanked small businesses, particularly in the Latino community and gig economy. The company purchases future receivables from merchants at a discount, collecting daily or weekly remittances over an average term of roughly four and a half months. Unlike most competitors in the fragmented merchant cash advance space, Fortune controls the entire vertical: origination, underwriting, funding, and collections with no reliance on brokers, ISOs, or syndicators.

CEO Yoel Damas brings 14 years of personal investing experience in revenue-based finance portfolios, while CFO Juan Sese, a former Morgan Stanley professional turned private equity investor, joined after becoming the company’s anchor investor. The founding team invested $5.4 million into the company in 2024, of which $4 million was deployed to fund merchants — that capital has since generated $17 million in cumulative funding and $9.6 million in accounts receivable as of March 2026, with no additional capital injected. The company operates a Colombia-based call center for outbound origination at a fraction of U.S. labor costs, and reports that current infrastructure could handle roughly three times its present funding volume. An S-1 has been filed with the SEC as the company pursues a NASDAQ uplist, and management is actively seeking non-dilutive financing to scale without further shareholder dilution.

Positive Takeaways

• Fully vertically integrated model (originate, underwrite, fund, collect) eliminates broker/ISO margins and aligns incentives across the entire process

• Founding team invested $5.4 million in 2024 ($4 million deployed to fund merchants, $1.4 million into infrastructure and uplisting); that $4 million has generated $17 million in cumulative funding and $9.6 million in accounts receivable as of March 2026, with zero additional capital injected

• Short average advance duration (~4.5 months) enables rapid capital recycling (~3x per year) and quick adjustment to changing market conditions

• Average deal size of ~$6,200 in fiscal year 2025 across over 1,800 deals creates a highly diversified portfolio, reducing concentration risk

• ~42% of March 2026 advances were renewals from existing merchants, indicating strong product satisfaction and improving unit economics on repeat deals

• Uber and rideshare drivers represent a low-default, high-frequency-payment segment with a large addressable market (~2.5 million drivers in the U.S.)

• Company reports profitability on both a GAAP and non-GAAP basis, with operations fully self-sustaining from advance cash flows

• No shares have been diluted since current management took control ~18–19 months ago; all legacy toxic debt has been settled

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Cautious Takeaways

• GAAP accounting treatment significantly understates economic performance: only ~32.8% of each collected dollar is recognized as revenue, and a 16.5% loss provision is applied upfront despite minimal realized write-offs — investors must evaluate KPIs alongside GAAP financials to understand the business

• Growth is currently constrained by available capital, not demand; scaling depends on securing non-dilutive financing or completing the planned NASDAQ uplist

• Revenue-based finance is a non-standard product category with limited public company comparables, creating potential for persistent market misunderstanding

• Preferred stock structure remains outstanding with a high conversion ratio; while management has committed on the record to restructuring it as a control-only mechanism with economic conversion delayed years into the future, this remains an unformalized commitment

• The business was born out of economic disruption (post-2008 lending gap), and while management argues a credit tightening would benefit demand, a severe shutdown scenario (e.g., COVID-style) could spike defaults across the portfolio

• Outbound-only customer acquisition via a Colombia-based call center, while capital-efficient, limits diversification of lead sources and could become a bottleneck at scale

• The company operates on the OTC market with limited liquidity; uplist timeline remains uncertain pending SEC comment resolution

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

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Cannara Biotech is a vertically integrated cannabis producer in Canada, quietly building one of the most operationally efficient platforms in the sector. The company was introduced to us by . The company controls the full value chain, from genetics and cultivation to processing, allowing scale to drive not just revenue growth but higher margins. Under the leadership of CFO Nicholas Sosiak, the company focuses on perfecting a select portfolio of flagship brands rather than chasing market hype, while leveraging regulatory frameworks that favor disciplined, government-facing operators.

A notable example of Canary’s strategy is the Valleyfield acquisition: a $250 million purpose-built facility purchased for $27 million, now anchoring the company’s expansion and creating operational headroom that competitors find hard to match. With 19 consecutive quarters of positive EBITDA, over $20 million in operating cash flow in 2025, and a 45% gross margin in the latest quarter, Canary Biotech has established both financial stability and operational leverage. The company is currently number one in Quebec with a 15% market share and is methodically expanding across Canada, with the government as its primary customer, minimizing receivables risk and reinforcing barriers to entry.

Positive Takeaways

• Fully vertically integrated cannabis operation with two large Quebec facilities totaling 1.6M sq. ft. and 450 employees

• Produces 50,000 kg/year, with potential to scale to 100,000 kg per facility at ~$3/gram production cost

• 19 consecutive quarters of positive EBITDA and 13 consecutive quarters of positive cash flow; $20M operating cash flow in 2025

• Proprietary genetics and R&D strategy, with over 15 unique strains driving differentiation and consumer demand

• Strong regulatory positioning: government as primary buyer reduces credit risk and strengthens barriers to entry

• Disciplined approach to growth through facility acquisitions and operational optimization

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Cautious Takeaways

• Expansion outside Quebec depends on successfully entering new provincial markets

• Scaling production to full facility potential may require additional capital investment and operational fine-tuning

• The market is still fragmented and competitive; execution risk remains in maintaining brand leadership and operational efficiency

• Reliance on government contracts creates concentration risk, though it mitigates receivables exposure

• Regulatory changes or shifts in cannabis pricing and taxation could impact margins and growth trajectory

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

Amtech Systems is a semiconductor equipment and consumables company focused on advanced packaging and fabrication processes, with a growing role in AI-driven infrastructure. Under CEO Bob Daigle, the company has undergone a significant transformation, moving away from a fragmented, capital-intensive structure toward a more streamlined and cash-generative model. A key part of this shift is what management calls a “semi-fabulous” approach… outsourcing much of the manufacturing to partners while maintaining control over core production and intellectual property.

Today, the business is split between capital equipment used in chip packaging, particularly reflow ovens tied to AI and data center buildouts, and a smaller but growing consumables and specialty chemicals segment. The restructuring effort has included shedding underperforming product lines, reducing the manufacturing footprint, and improving supply chain flexibility. As a result, Amtech is now positioned to scale with demand while requiring relatively low incremental capital, with AI exposure providing a near-term tailwind and consumables offering a longer-term, more stable revenue stream.

Positive Takeaways

• Meaningful exposure to AI infrastructure, with related revenue growing from under 10% to over 35% of segment revenue

• Successful transition to an asset-light “semi-fabulous” model, improving scalability and reducing fixed costs

• Production efficiency gains, with output roughly doubling without additional shifts or major capex

• Clean balance sheet with $22M in cash, no debt, and improving operating cash flow

• Consumables and specialty chemicals business provides higher-margin, recurring revenue potential

• Clear focus on profitability, cash flow, and disciplined portfolio management
  

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Cautious Takeaways

• AI-driven demand is a major current tailwind, but the overall business is still cyclical and dependent on semiconductor capex cycles

• Capital equipment business can still be lumpy.

• Growth in consumables and specialty chemicals recurring business is still developing and requires continued execution

• Expansion of total addressable market (e.g., higher-density packaging, panel-level applications) is longer-dated and not yet a material revenue contributor

• Reliance on outsourcing partners introduces some operational and supply chain dependency

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

Branch Out Foods is an innovator in the dried fruit, vegetable, and emerging shelf-stable food space. Founded by Eric Healy, who brings entrepreneurial experience from Kettle Chips and Kona Brewery, the company has developed a proprietary technology platform around the licensed Rev Radiant Energy Vacuum dehydration process. This process is faster, more cost-efficient, and preserves more flavor than traditional freeze-drying, giving Branch Out a distinct product advantage.

The company operates a 50,000 sq. ft. facility in Peru, close to the source of raw materials, and has demonstrated its technology in major North American retailers including Costco, Walmart, and Sam’s Club. Beyond the technology, Branch Out is building operational capabilities in sourcing, manufacturing, and distribution, supporting multiple revenue streams from branded products, white-label, and private-label offerings. Expansion into adjacent categories such as dairy, shelf-stable cheese, and kids’ lunch multi-packs further diversifies its growth trajectory, with capacity expansion targeting $40–50M in revenue potential.

Positive Takeaways

• Exclusive license for Rev Radiant Energy Vacuum technology in Peru, with select global exclusivities

• Operational control of a 50,000 sq. ft. factory with three production lines, positioned for significant capacity growth

• Products already in major North American retailers (Costco, Walmart, Sam’s Club) across multiple formats

• Technology preserves flavor 3× better than freeze-drying, providing a clear product differentiation

• Expansion into dairy and protein/fiber products aligns with growing consumer trends

• Multi-stream revenue approach: branded, private-label, and white-label offerings

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Cautious Takeaways

• Execution of capacity expansion is critical to realizing $40–50M revenue potential

• Navigating Peru’s legal, regulatory, and logistical environment carries operational risk

• Growth into new product categories (dairy, protein/fiber) is still early-stage and requires effective commercialization

• Dependence on a single manufacturing facility in Peru introduces operational concentration risk

• Success in North American retail channels depends on ongoing brand recognition and consumer adoption

• Company licenses, as opposed to owning Rev Radiant Energy Vacuum technology.

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

Elauwit Connection provides bulk internet and managed WiFi solutions to multifamily apartment buildings, offering a service positioned as both a tenant amenity and a way to improve property-level economics. By installing a building-wide network and billing property owners under long-term contracts, the company simplifies connectivity for tenants while delivering predictable, recurring revenue for landlords. Management brings prior experience in building and exiting a similar business, now applying the playbook to conventional multifamily properties where the value proposition appears even stronger. The newer Network-as-a-Service model further expands the addressable market by removing upfront infrastructure costs for property owners, making adoption more attractive.

Positive Takeaways

• Targets multifamily buildings with 100+ units using bulk internet + managed WiFi solutions

• Long-term contracts (7–10 years) provide recurring revenue characteristics

• Claims 200–300 basis point improvement in property net operating income (NOI) for customers

• Network-as-a-Service offering removes upfront capital burden for property owners, potentially accelerating adoption

• Management has prior experience successfully building and selling a similar business

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Cautious Takeaways

• Growth depends on adoption by traditionally slow-moving property owners

• Market remains fragmented, with legacy providers still dominating distribution channels

• Scaling the business may require significant sales and operational resources to reach wider adoption

• Contract execution and network reliability will be critical to maintaining recurring revenue streams

• Competitive response from established internet and WiFi providers could pressure margins or slow expansion

At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

BQE Water operates in the mining water treatment niche, with a 25-year operating history and a strategic shift over the past decade toward a more recurring, services-driven model. The company was introduced to us by . The company has built and operates 32 treatment plants globally, processing roughly 20 million cubic meters of water annually, using technologies designed to reduce waste, recycle chemicals like cyanide, and recover metals that would otherwise be lost in the process.

Its approach goes beyond simply providing equipment or one-off solutions. BQE integrates directly into mining operations, often managing water treatment as an ongoing service, which positions the company as a critical part of the production process rather than a replaceable vendor. By staying focused on mining, where environmental compliance, water management, and social license are becoming increasingly important, the company has carved out a specialized role in a highly regulated and technically demanding segment of the industry.

Positive Takeaways

• Proprietary technologies like Selenex and cyanide recycling address specific, high-value problems in mining operations

• Strong positioning as an embedded partner, leading to sticky relationships and long-term contracts

• Recurring revenue base is growing, improving visibility and quality of earnings over time

• Exposure to favorable industry trends: stricter environmental regulation and declining ore grades

• Disciplined capital allocation with a focus on IP protection and selective, synergy-driven M&A

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Cautious Takeaways

• Recurring revenue is still a minority of total revenue, leaving some dependence on project-based work

• Revenue can be lumpy due to the timing of mining projects and capital spending cycles

• Growth depends on the continued adoption of its technologies across new mining operations

• End-market exposure to mining introduces sensitivity to commodity price cycles and capex trends

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

Qualstar Corporation operates in the data storage market, with a primary focus on tape-based storage systems serving archival and long-term data retention needs. While tape is often viewed as legacy technology, it continues to play a role in specific use cases where cost efficiency and durability matter, particularly for infrequently accessed data. The company generates roughly 80% of its revenue from storage, with the remainder coming from a smaller power supply segment.

The current story is largely a turnaround. Under CEO Steve Bronson, the business has transitioned from losses to a more stable, break-even-to-profitable operation in its core segment. Qualstar operates with an asset-light model, sourcing hardware from OEM partners and selling through a network of channel distributors, while focusing internally on service, responsiveness, and maintaining long-standing customer relationships. With the base business stabilized, management is now attempting to reposition the company for growth through higher-value systems, software integration, and potential acquisitions.

Positive Takeaways

• Successful turnaround from a loss-making business to a stable, profitable core operation

• Niche positioning in archival storage, where tape still offers a cost advantage over disk for certain use cases

• An asset-light model reduces capital intensity and allows flexibility in scaling

• Established channel relationships and a customer base built over decades

• Strategic shift toward higher-value enterprise systems and software integration

• Optionality from planned uplisting and potential M&A to expand the platform

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Cautious Takeaways

• Core reliance on tape storage, a segment with long-term perception and adoption headwinds

• Growth strategy is still early, with pipeline opportunities not yet fully converted into revenue. This could lead to volatile financial quarters.

• Execution risk in moving upmarket while maintaining margins and competitiveness

• Dependence on OEM partners limits control over product differentiation

• M&A strategy introduces integration and capital allocation risk, especially at a small scale

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At the Prime Microcaps Conference, hosted by GeoInvesting and MS Microcaps, we brought together a small group of handpicked companies to present their growth plans to investors who appreciate the opportunities that smaller-cap companies can present.

To help you follow the presentation videos, we also curated our positive and cautious takeaways from each presentation, from an investor’s perspective.

Thank you for your attendance and support at our first in-person Prime Microcaps Conference this past Friday. The feedback we’ve received from both attendees and presenting companies has been exceptional, and we truly appreciate your participation, insights, and thoughtful questions during the Fireside Chats.

We are currently in the process of editing and preparing the conference video content, which will soon be uploaded to the Prime Microcaps Substack. We’ll be sure to keep everyone informed once it is available.

In the meantime, we welcome any feedback you may have as we continue working to make the next conference even better.

Thank you again for being part of the event. We look forward to seeing you at the next one.

If you haven’t done so yet, please make sure to visit the Prime Microcaps Substack here.

Best regards,
Maj

We are looking forward to welcoming you to the Prime Microcaps Conference tomorrow in Fort Lauderdale. Below are the final details for the event.

In this email:
• Event location and arrival details
• Presentation and interview format
• Day-of conference schedule

• Links to company previews and investor materials

• Optional investor cocktail meet-up this afternoon with Scott Weis (Semco Capital) and Florida-based, Alliance Entertainment (AENT)
• Invitation to participate in on-stage Fireside discussions with Maj and Ed.

Event Location

Tower Club Fort Lauderdale
100 SE 3rd Ave, 28th Floor
Fort Lauderdale, FL 33394

Arrival Time: Please plan to arrive by 10:40 AM so we can promptly register you and begin on time. Please allow for a 10 to 15 minute walk from the hotels we had suggested.

Presentation and Interview Format

- Each participating company will have 40 minutes total on stage:

• 15 minutes – Company presentation and investor deck
• 25 minutes – Fireside Chat discussion with Maj Soueidan and Ed Gilmore, followed by investor Q&A

- We encourage attendees to actively participate in the discussion. If you would like to ask questions during the join Maj and Ed on stage to assist digging into company business during the fireside chats, please let us know during the event, or more preferably, reach out today via email so we can coordinate.

Day of Conference Schedule

Please see the full schedule for the day below.

Pre-Event Investor Materials

To help you prepare ahead of the conference, we encourage you to review the materials available on our Substack:

• Company 1-pager previews and the most recent investor decks

• Quick 7-minute analyst rundown covering all participating companies

These resources provide a helpful overview before the live presentations.

Optional Cocktail Investor Meet-Up Today

For anyone already in Fort Lauderdale this afternoon, Scott Weiss of Semco Capital will be meeting with Alliance Entertainment (NASDAQ:AENT) at 4:00 PM today at Earls Kitchen + Bar on Las Olas. (1002 E Las Olas Blvd, Fort Lauderdale, FL 33301)

Guests are welcome to stop by if they would like to connect informally ahead of the conference.

Day-Of Contact

If you have any questions, delays, or day-of issues, please contact:

Kate
754-245-4762

We look forward to a great day of presentations, discussion, and idea exchange with all of you.

See you tomorrow.

Best regards,
Prime Microcaps Team

I briefly describe each company and highlight some of its key strengths and weaknesses. It’s another quick way to get up to speed before the event and supplements what is already available here.

These are the 10 attending companies:

1. TXRP | TX Rail Products Inc

2. USAQ | QHSLab Inc

3. ASYS | Amtech Systems Inc

4. LRGR | Luminar Media Group Ord Shs

5. ELWT | Elauwit Connection Inc

6. PPIH | Perma-Pipe International Holdings Inc

7. CVE:BQE | BQE Water Inc

8. BOF | BranchOut Food Inc

9. TSE:LOVE | Cannara Biotech Inc

10. QBAK | Qualstar Corp

Hey everyone! Via this video, I thought I’d give some insights on the 10 companies participating in the upcoming Prime Microcaps 2026 Conference (3/13/2026).

I briefly describe each company and highlight some of its key strengths and weaknesses.

One-Pagers, Presentations & News Headlines

Financials

Note: All amounts are in millions unless stated otherwise. CVE:BQE and CVE:LOVE figures are in CAD millions.

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