PreveCeutical Medical (PREV) AI Stock Analysis

• Market Cap: C$11.74M
• Dividend Yield: N/A
• Average Volume (3M): 143.42K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.25
• Revenue Growth: N/A
• EPS Growth: -120.00%
• Country: CA
• Employees: 7
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): >-0.01
• Shares Outstanding: 586,811,950
• 10 Day Avg. Volume: 276,937
• 30 Day Avg. Volume: 143,419
• PEG Ratio: 114.24
• Price to Book (P/B): -2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: C$0.02 ▲(20.00% Upside)

The score is driven down primarily by weak financial performance—no revenue, widening losses, cash burn—and a stressed balance sheet with negative equity and notable leverage. Technicals add downside pressure as the stock trades below key moving averages with negative MACD. Corporate events provide some offset via strategic restructuring and new financing, but they do not fully mitigate the underlying funding and execution risks.

Positive Factors

Focused R&D in pharmaceutical and cannabinoid therapeutics

The company’s explicit focus on pharmaceutical and therapeutic technologies, including cannabinoid delivery platforms and drug-development programs, provides a clear strategic niche. A sustained R&D focus in a specialized therapeutic area can yield durable IP, regulatory pathways, and differentiated products if programs advance.

Corporate restructuring and financing actions

Completion of a spin-off and a private placement represents a structural corporate realignment and an infusion of capital. These actions can sharpen management focus on core programs and temporarily shore up liquidity, improving the company’s runway and execution capacity over the medium term.

Improving free cash flow trend

While free cash flow remains negative in absolute terms, the positive growth metric vs. the prior period signals some improvement in cash conversion and expense control. If management sustains this trend, it supports longer-term cash stability and reduces immediate financing pressure.

Negative Factors

No revenue and widening operating losses

Absence of operating revenue alongside widening losses is a fundamental weakness: it indicates lack of commercial validation and forces reliance on financing. Persisting negative earnings means continued cash drain and raises execution risk over the next several months absent product or partnership commercialization.

Stressed balance sheet: negative equity and high leverage

Deeply negative equity and debt that materially exceeds a thin asset base sharply reduce financial flexibility. This capital structure elevates default and dilution risk, constrains strategic options, and makes the company vulnerable to funding shortfalls over a multi-month horizon.

Ongoing cash burn and reliance on external funding

Sustained negative operating and free cash flow require frequent external financing. Reliance on placements and restructurings is a structural risk: future program advancement and shareholder dilution hinge on the company’s ability to raise capital, threatening continuity if markets tighten.

PreveCeutical Medical Business Overview & Revenue Model

Company Description

PreveCeutical Medical Inc., a health sciences company, engages in the development of options for preventive and curative therapies utilizing organic and nature identical products. Its pipeline products include Cannabinoid Sol-Gel Delivery, a cannabinoid-based nose-to-brain delivery system that provides relief from various indications, including pain, inflammation, seizures, and neurological disorders; BSV Peptide Program for targeting cancer progression; Non-Addictive Analgesic for pain management; and Dual Gene Therapy for type 2 diabetes and obesity. The company also develops a range of medicinal cannabis-based products. PreveCeutical Medical Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

PreveCeutical makes money primarily through the research and development of therapeutic products, which are then licensed or sold to pharmaceutical companies or healthcare providers. The company may also generate revenue through strategic partnerships, collaborations, and possibly government or private grants supporting their innovative research. By progressing their products through clinical trials and obtaining necessary regulatory approvals, PreveCeutical can enter into commercialization agreements or secure funding from partners interested in their pipeline offerings.

PreveCeutical Medical Financial Statement Overview

Summary

Financial performance is very weak: no revenue reported, widening TTM losses, and ongoing cash burn. The balance sheet is the largest risk with deeply negative equity and meaningful debt relative to a very small asset base, implying elevated funding/dilution risk.

Income Statement

Operating performance is very weak. The company reports no revenue across the annual periods provided and TTM (Trailing-Twelve-Months), while losses remain large (TTM net loss of about -3.1M and EBIT of about -2.8M). Losses widened meaningfully versus 2024 (annual EBIT about -0.8M), indicating higher cash burn/expense intensity with no offsetting sales traction. The only relative positive is that 2024 net income is near breakeven compared with sizable losses in 2023–2022, but the TTM re-acceleration in losses dominates the current picture.

Balance Sheet

Balance sheet risk is elevated. Stockholders’ equity is deeply negative (TTM about -7.4M) and has worsened over time, while total debt is high relative to the company’s small asset base (TTM debt about 4.6M vs. assets about 0.46M). Negative equity limits financial flexibility and typically implies heavy reliance on external funding. While debt levels rose only modestly recently, the combination of leverage and a thin asset base is a key weakness.

Cash Flow

Cash generation remains pressured, but with some recent improvement trends. Operating cash flow and free cash flow are negative in TTM (about -1.25M and -1.31M, respectively), indicating ongoing cash burn. However, free cash flow growth in TTM is positive versus the prior annual period (improving from roughly -0.43M in 2024 to about -1.31M TTM still worse in absolute terms, but growth metric indicates volatility), and free cash flow has generally tracked reported earnings (free cash flow to net income around ~1 in most periods). A historical bright spot is 2020, when operating and free cash flow were slightly positive, but subsequent years reverted to negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-10.13K	-10.10K	-9.86K	-9.89K	-5.09K	-75.17K
EBITDA	-2.78M	-837.46K	-955.09K	-1.23M	-829.83K	-2.02M
Net Income	-3.08M	-1.17K	-1.27M	-1.48M	-1.73M	-3.80M
Balance Sheet
Total Assets	456.04K	225.66K	181.51K	189.14K	161.20K	302.45K
Cash, Cash Equivalents and Short-Term Investments	103.68K	59.14K	1.43K	5.62K	16.06K	156.44K
Total Debt	4.60M	4.46M	3.83M	3.23M	2.93M	3.01M
Total Liabilities	7.85M	6.86M	5.96M	4.82M	4.27M	3.91M
Stockholders Equity	-7.45M	-6.64M	-5.78M	-4.64M	-4.10M	-3.60M
Cash Flow
Free Cash Flow	-1.31M	-428.49K	-296.97K	-222.64K	-481.59K	61.94K
Operating Cash Flow	-1.25M	-426.69K	-296.97K	-222.64K	-426.39K	64.59K
Investing Cash Flow	-6.23K	-1.80K	0.00	850.00	-52.70K	-2.65K
Financing Cash Flow	1.39M	487.64K	293.62K	211.72K	136.75K	184.46K

PreveCeutical Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PREV, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PREV.

PreveCeutical Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MDMA	49 Neutral	C$10.89M	-4.98	-85.96%	―	-72.51%	-170.13%
BETR	43 Neutral	C$8.35M	-4.14	―	―	―	62.43%
PREV	42 Neutral	C$11.74M	-3.64	21.59%	―	―	-120.00%
DOSE	41 Neutral	C$18.46M	-4.19	―	―	95.76%	22.56%

PreveCeutical Medical Corporate Events

PreveCeutical and BioGene Complete Strategic Spin-Off Arrangement

PreveCeutical Medical Inc. and BioGene Therapeutics Inc. have completed a plan of arrangement that involves the spin-off of 12,000,000 BioGene shares from PreveCeutical. This strategic move, approved by shareholders and the Supreme Court of British Columbia, results in PreveCeutical shareholders owning shares in both companies. BioGene will focus on developing a Dual Gene Therapy program, while PreveCeutical continues its work on preventive and curative therapies. This arrangement is expected to enhance the focus and operational efficiency of both companies, potentially strengthening their positions in the health sciences industry.

PreveCeutical Finalizes Arrangement with BioGene to Expand Market Reach

PreveCeutical Medical Inc. announced the completion of its plan of arrangement with BioGene Therapeutics Inc., effective November 24, 2025. Shareholders will receive new common shares of PreveCeutical and a portion of BioGene shares. This strategic move is expected to enhance PreveCeutical’s market position and expand its reach in the health sciences industry, potentially benefiting stakeholders by broadening the company’s therapeutic offerings.

PreveCeutical Clarifies Shareholder Arrangement with BioGene

PreveCeutical Medical Inc. announced a clarification regarding its plan of arrangement with BioGene Therapeutics Inc., specifying that shareholders of record on November 24, 2025, will receive new common shares of PreveCeutical and a fraction of BioGene shares. This announcement is significant as it impacts the company’s shareholder structure and could influence its market positioning, potentially affecting stakeholders’ interests.