ProMIS Neurosciences Inc., a pharmaceutical company specializing in preparations for neurological diseases, has received a notice of non-compliance from The Nasdaq Stock Market. The notice, dated July 2, 2024, indicates that the company has not maintained the required minimum Market Value of Listed Securities (MVLS) of $35 million for the past 30 consecutive business days, as stipulated by Nasdaq Listing Rule 5550(b)(2).
The current status of the company's securities remains unchanged, and trading continues on the Nasdaq Capital Market under the symbol NASDAQ:PMN. However, ProMIS Neurosciences has been given a 180-day period, until December 29, 2024, to regain compliance with the MVLS requirement.
To achieve this, the company must sustain a MVLS of at least $35 million for a minimum of ten consecutive business days within this timeframe. The duration for compliance may extend to a maximum of 20 consecutive business days under certain conditions as determined by Nasdaq.
Should ProMIS Neurosciences fail to meet the MVLS requirement within the allotted period or fail to meet an alternative listing standard, the company's common stock is at risk of being delisted from the exchange. If the company receives a delisting notification, it is entitled to appeal the decision before a Nasdaq hearings panel.
The company has expressed its intention to closely monitor the market value of its listed securities and is considering all available options to regain compliance with the Nasdaq's listing requirements. Despite these efforts, there is no guarantee that ProMIS Neurosciences will be able to meet the necessary criteria for maintaining its listing.
The information regarding this notice of potential delisting is based on a press release statement filed with the SEC. The company's management, including Interim CEO Neil Warma, has acknowledged the situation and is actively seeking solutions to address the compliance issue. As the situation develops, stakeholders and investors are keeping a watchful eye on the company's actions to secure its position on the Nasdaq Capital Market.
InvestingPro Insights
As ProMIS Neurosciences Inc. navigates through its compliance challenges with Nasdaq's listing requirements, a closer look at the company's financial metrics provides additional context. According to InvestingPro data, the company's Market Cap stands at $30.53 million, just shy of the Nasdaq's minimum requirement.
The financial outlook appears challenging, with a negative P/E Ratio of -2.16 over the last twelve months as of Q1 2024, which further declined to -2.72 when adjusted. Additionally, the company has a strikingly high Price / Book ratio of 395.95, reflecting the market's valuation of the company's net asset value.
InvestingPro Tips suggest that ProMIS Neurosciences suffers from weak gross profit margins, with a Gross Profit of -$6.5 million in the same period. Analysts do not anticipate the company to be profitable this year, and it has not been profitable over the last twelve months. These financial challenges are compounded by the fact that the company does not pay dividends to shareholders, which could be a factor for investors seeking income-generating investments.
For those considering further analysis or investment in ProMIS Neurosciences, additional InvestingPro Tips are available, which could provide deeper insights into the company's financial health and market performance.
Interested readers can take advantage of the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, accessing a comprehensive set of tips to guide their investment decisions. There are 5 additional InvestingPro Tips available for ProMIS Neurosciences at https://www.investing.com/pro/PMN, offering a more nuanced understanding of the company's financial position and potential strategies for regaining compliance and securing its Nasdaq listing.
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