Small-cap technology stocks are attracting renewed attention as profitability improves, manufacturing scales up and new security needs emerge. Battery safety, advanced materials and quantum-resistant cybersecurity are becoming increasingly important across industrial and digital applications.
BNN Bloomberg spoke with Kim Bolton, president and portfolio manager at Black Swan Dexteritas, about why he sees opportunity in select Canadian small-cap tech companies as commercialization milestones and long-term demand trends begin to align.
Key Takeaways
- Improving profitability is helping renew investor interest in small-cap technology after years of uneven performance.
- Demand for safer, longer-lasting batteries is expanding beyond electric vehicles into industrial and mission-critical uses.
- Advanced materials suppliers benefit from high-purity requirements and long-term customer relationships tied to clean energy and electronics.
- Quantum-safe cybersecurity is gaining importance as organizations prepare for future encryption and computing threats.
- Execution on manufacturing scale, partnerships and commercialization milestones remains critical for small-cap tech success.
Read the full transcript below:
ROGER: It’s time for Hot Picks. Our next guest has Canadian lithium-ion battery and manufacturing company Electrovaya as his top pick. Electrovaya posted its first profitable year in 2025, and he sees more upside in 2026. Joining us now is Kim Bolton, president and portfolio manager at Black Swan Dexteritas.
And full disclosure, Kim was laughing because I’m still using a Black Swan pen from years ago — and it still works. But let’s get back to business. Electrovaya — what do you like about it?
KIM: I like doing these segments because they focus on Canadian small- and mid-sized companies where we really do the homework. Electrovaya is based in Mississauga and has been around since 1996. Last year was its first profitable year.
It’s an interesting company because it focuses on lithium-ion battery technology and manufacturing. It has a platform called the Infinity Battery Technology, which delivers industry-leading longevity and safety. A few years ago, the company was more focused on the electric vehicle market, but it did a very good job pivoting. It moved into electric forklifts, robotics and airport ground equipment. Since then, the business has really been clicking along.
ROGER: I have to ask — how did it manage to go nearly 30 years without making a profit?
KIM: It’s a battery company, and for a long time it followed a fairly traditional battery model. When electric vehicles came along, it benefited from that trend, and more recently it pivoted again into robotics and electric forklifts. That’s where things really started to take off.
Last year, revenue was about $65 million, and the company finally turned profitable.
ROGER: One of those overnight success stories — decades in the making.
KIM: Exactly. And interestingly, our second pick, 5N Plus, was also founded in 1996. You can see on the chart how Electrovaya has really taken off over the past year. The company has pivoted into a very substantial business.
ROGER: Just to clarify, are we still talking about Electrovaya, or have we moved on to 5N Plus?
KIM: Still Electrovaya. You asked how it kept going. Last year, the company completed a $25-million equity raise. It also secured funding from private investors, a new $25-million facility from Bank of Montreal, and a $51-million loan from the U.S. Export-Import Bank. That has really strengthened the balance sheet, and management has done a very good job over the past year.
ROGER: And you see significant room for growth?
KIM: Yes, absolutely.
ROGER: Beyond forklifts, where else is the company expanding?
KIM: Forklifts remain important, but more recently it has moved into batteries for airport ground equipment. You can see the company expanding into a range of applications that require lithium-ion batteries.
ROGER: All right, let’s move on so we can get to the other names. 5N Plus — Montreal-based and also around for about 30 years. What do you like about it?
KIM: You might be wondering where the name comes from. The “5N” refers to the purity level of the materials it produces — 99.999 per cent, or five nines. The “Plus” reflects the company’s focus on added value and innovation.
It’s a niche supplier of ultra-high-purity metals used in semiconductors, energy, electronics, medical applications and aerospace. You can see on the chart that the company has performed very well. It reported earnings in early November and raised its guidance.
For 2025, revenue should come in around $60 million to $65 million, and for 2026, guidance has increased to about $85 million to $90 million.
ROGER: That’s a big jump.
KIM: It is, and the market has responded accordingly.
ROGER: Finally, Quantum eMotion.
KIM: If you thought the other two were complicated, this one is even more so. We’ve been following Quantum eMotion for about a year and a half to two years, back when it was trading around 30 to 45 cents a share.
The company is based in Montreal, with technology originating from Université de Sherbrooke. It operates in quantum computing and cybersecurity. Classical computing relies on zeros and ones. Quantum computing uses qubits, which allow far more complexity within the same amount of time.
Quantum eMotion has patented an electron-tunnelling quantum random number generator and combines that with proprietary post-quantum cryptography. Together, this provides protection against both classical and quantum-based cyber threats.
The stock rose to just under $6 by the end of 2025 and is now trading around $4.75.
ROGER: You still see opportunity there?
KIM: It’s not profitable yet, but it has achieved several key milestones. One of the most important is securing Taiwan Semiconductor as a manufacturing partner. The company has made meaningful progress, and we think it has strong potential.
ROGER: We’ll have to leave it there. Kim, thanks as always for joining us.
KIM: Thanks, Roger.
ROGER: Kim Bolton, president and portfolio manager at Black Swan Dexteritas.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ELVA TSE | Y | N | Y |
| VNP TSE | Y | N | Y |
| QNC CVE | Y | Y | Y |
This BNN Bloomberg summary and transcript of the Jan. 20, 2026 interview with Kim Bolton are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
