ProMIS Neurosciences, Inc. — financial distress indicators
Financial-health summary
ProMIS Neurosciences, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 52/100). The main indicators are operations consume cash, ohlson o-score signals likely failure and massive shareholder dilution. Independently, the Ohlson accounting model puts its 1-year failure probability at 100%. In its favour: strong current ratio (9.92).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 8.69 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +65% in a year.
Survival financing: repeated equity raises at depressed prices.
Cash covers ~22 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Price is -63% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (9.92).
📰 Recent news scan
- Alzheimer’s drug data are expected in Q1 2027. ProMIS hires a former Biogen leader to shape market plans. - Stock TitanGoogle News · 2026-10-06
- 80,000 stock options go to Ivana Rubino at ProMIS Neurosciences (PMN), exercisable at $9.37. - Stock TitanGoogle News · 2026-10-06
- ProMIS Neurosciences Inc. (NASDAQ: PMN) Share Price, PMN Stock News, PMN Share Price & Updates - KalkineGoogle News · 2026-09-25
- $PMN stock is up 16% today. Here's what we see in our data. - Quiver QuantitativeGoogle News · 2026-07-28
- Wall Street Analysts See a 230.23% Upside in Promis Neurosciences (PMN): Can the Stock Really Move This High? - Yahoo FinanceGoogle News · 2026-06-30
- PMN Forecast — Price Target — Prediction for 2027 - TradingViewGoogle News · 2026-06-25
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do ProMIS Neurosciences, Inc.'s financial-health indicators show?
As of 2026-10-08, ProMIS Neurosciences, Inc.'s public financial data places it in the 'Weak' band with a distress score of 52/100, driven by operations consume cash, ohlson o-score signals likely failure and massive shareholder dilution. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is ProMIS Neurosciences, Inc.'s financial distress score?
52/100 ('Weak'). Ohlson O-score 8.69 (model 1-year failure probability 100%).
What works in ProMIS Neurosciences, Inc.'s favour?
Strong current ratio (9.92).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.