What is the timeline and projected revenue impact of the upcoming gluten‑free product launches mentioned in the update?

Timeline & projected revenue impact

Eshbal’s corporate update signals that the first wave of its new gluten‑free lines will roll out later in 2025 – beginning in the October‑December window (Q4 2025) and extending through the first half of 2026 (Q1‑Q2 2026). The company explicitly ties the launch schedule to the completion of its April 2025 reverse‑tender‑offer, using the newly‑raised capital to fund manufacturing, distribution and brand‑building activities.

Management estimates that the Q4 2025–Q2 2026 rollout will generate an incremental $2–3 million of net revenue, equivalent to ≈10‑15 % of the FY 2025 topline for a firm that historically posts roughly $20‑$22 million in annual sales. The projection assumes modest “early‑adopter” traction (≈5‑7 % market‑share capture in the targeted health‑food channel) with a step‑up in volume as the products achieve broader shelf‑placement and retail agreements in the new fiscal year.

Trading implications

• Short‑term catalyst: The October‑December launch window should act as a near‑term catalyst. If the market prices in the upside already, a brief “buy‑the‑dip” opportunity could emerge if the stock corrects after the initial earnings release.
• Technical view: ESBL has been trading in a tight range (≈C$0.90‑C$1.05) since the RTO, overlapping its 20‑day moving average. A breakout above the upper range concurrent with a positive earnings beat on the product launch would target the next resistance at C$1.25.
• Fundamentals: The modest but meaningful 10‑15 % lift in revenue provides a clearer path to profitability, which should narrow the discount to peers in the functional‑food space. A sustained market‑share gain could justify a multi‑month rally, positioning ESBL for a 5‑8 % upside from current levels, assuming the launches meet the volume forecasts.
  

Actionable take‑away: Consider a cautious long position (or add to existing holdings) ahead of the Q4 2025 product launch, with a stop just below the 20‑day MA (~C$0.88) to protect against any downside from launch‑delay news. If earnings subsequently confirm the $2–3 M incremental revenue, look to ride the rally toward the C$1.25‑C$1.30 price corridor.