multi-billion dollar microcap opportunity hiding in a dark alley

7/26/2019 Multi-billion dollar microcap opportunity hiding in a dark alley

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Multi-billion dollar microcap opportunity hiding in a dark alley

See end notes for more details. 16/14/2016


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Disclosures

This slide deck contains current opinions of Bigger Capital as of May 19 only and maycontain certain forward-looking information. Such information involves known andunknown risks, uncertainties and other factors that may cause actual investmentresults, performance or achievements to be materially different from those implied bystatements herein, and therefore these statements should not be read as guaranteesof future performance or results. All forward-looking statements are based on ourcurrent beliefs as well as assumptions made by and information currently available toit as well as other factors. Readers are cautioned not to place undue reliance on theseforward-looking statements, which speak only as of the date of this slide deck. Actualevents may differ materially from current expectations. Bigger Capital disclaims anyintention or obligation to update or revise any forward-looking statements, whether asa result of new information, future events or otherwise.

Bigger Capital and related entities own more than 10% of the company discussed inthis presentation. This micro cap stock is not suitable for the majority of investors. Thelikely outcome of an investment is a loss of principal. Take our opinions with a grain of

salt. If you find yourself relying on our views to make an investment decision it meansyou definitely did not do your homework about this situation. Please do not rely onour views, instead use the information as a jumping off point to begin your ownindependent due diligence.

See end notes for more details. 2


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Bigger Capital

Invest in situations that have more than 10 times return potential.

Hard to replicate and misunderstood business model.

Management team that can lead the effort to success.

Very cheap.

Little to no debt.

We make very few bets.



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Results Highlight

Innovative Fibers (1995). Sold to Alcatel in 2000. 600x.

Amazon.com (2001). Still holding. Up to 100x on some purchases.

Priceline (2002). Sold too early. 4x.

McDonalds (2003). 4x.

Netflix (2005). Sold too early. 5x.

Crocs (2009). 11x.

Plug Power (2013). 9x.

American Apparel (2014). 2x.

Phorm (2014). Insolvent (2016). OOPS! We do make many mistakes. Take our

opinions with a grain of salt.



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Making a high margin of safety, multi bagger potential, and simple to understand

bet on a company that has a better than a fair chanceof finding a cure for

Alzheimers disease.



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Multi-billion dollar opportunity hiding in a dark alley.

This tiny microcap is a next to free call option that could return 2x, 5x, 10x, 50x+.

According to the Alzheimer Association, the cost to care for Alzheimers patients

and other dementias are projected to increase from $183 billion in 2011 to $1.1

trillion in 2050 as the baby boomers population ages. Alzheimers will affect

everyone and all of us to varying degree - including yourself.

Lets do something about extinguishing the scourge of the twenty first century.



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SO WHAT IS THE BIG IDEA?



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Our mission is to discover and develop precision medicine solutions for early detection

and effective treatment of neurodegenerative diseases, in particular Alzheimers

disease (AD) and amyotrophic lateral sclerosis (ALS).



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0

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10/2007 10/2008 10/2009 10/2010 10/2011 10/2012 10/2013 10/2014 10/2015

PricePerShare(PMN.TO,CDN)

2007 to 2014 ProMIS, led by Chief Scientist Dr. Neil Cashman,

developed a strong prion intellectual property and super

computing platform to model how proteins misfold. It investedmore than $30 million in its platform and pursuing multiple

objectives such as finding a cure for ALS and Ovarian Cancer,

among others.

The management team under the leadership of a controversial

BOD, spent all the money they had without focus chasing too

many rabbits in too many directions.See end notes for more details. 9

PMN.TO


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0

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10/2007 10/2008 10/2009 10/2010 10/2011 10/2012 10/2013 10/2014 10/2015

PricePerShare(PMN.TO,CDN)

In early 2015, the company ran out of cash setting the stage for a

company reset on a stronger foundation with renewed focus.

In June 2015, the Board is reconstituted, Gene Williams becomesits Executive Chairman, and Elliot Goldstein becomes Promis CEO.

In the summer 2015, the company raises $2 million followed by a

$1 million (CDN) round this spring.


PMN.TO


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Why did management join a roadkill?

Elliot and I have worked together since the 1980's, and realize we make a very effective team. Heinvested in one of my successful startups (Adheris), and I was on his Board at British Biotech, amongother things.

A few years ago we decided to make that partnership our sole focus. Drug development is a teamenterprise, and we make a good team.

When we created and ran DART, we realized that it would be a great deal easier administratively if Elliot

and I had a legal entity through which we could offer management services. That clarified issues like

reporting, accounting, ensuring that the client did not have to pay benefits, etc.

We quickly found ProMIS, and supported it for free for nearly a year, until we clarified the tremendousopportunityand set on the path you know about.

Eugene Williams



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Show Your Work



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Making a high margin of safety, multi bagger potential, and simple to understandbet on a

company that has more than a fair chance of finding a cure for Alzheimers.



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High margin of safety. Really? IP of the company is worthmore than its enterprise

value.

Lower strategic risk. Really? This companys computing algorithm provides a

rational framework for explaining why and how big pharma multi billion

investment research failed in moving an effective Alzheimers disease solution

across the finish line, and where the solution resides. This opportunity is a frugalinformation arbitragein that it uses its computing models and the results of tens

of billions of dollars of research to its advantage to move a solutionacross the

finish line resulting in a potential large payoff while avoiding a billion dollar plus

investment.



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Intellectual Property (IP)

Promis Algorithm

Collective Coordinates

Genus Patent on SOD-1 Protein (ALS)

Patents filed on 4 Amyloid Beta disease specific epitopes. 2 more filings are in the

pipeline. Promis believes a total of 6 epitopes will cover most of the Amyloid

territory.

Multiple Monoclonal Antibodies (MABs) that binds tightly to the epitope targets

and to forms of misfolded Ab, with no measurable off-target binding.



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Low enterprise value: $13 million USD (June 5)

High margin of safety: The company should get a multiple of its market cap of $13

million if it decided to put itself for sale. Lets assume the company sells the Promis

algorithm, Collective Coordinates, SOD1 IP for $2.5 million each and the

Alzheimers IP for $5 million. This is a reasonable value for each component when

you consider most start-ups get funded at more than a $2.5 million pre-moneyvaluation for basically an experimental idea. The company has NOLs of $26 million

USD of which $12.4 million can be used to offset taxable income indefinitely. I

conservatively assign a fair value of $7 million USD on these. Value = $19.5 million

or 1.5x

Worst case: We sell the assets for $6.5 million in a distressed sale and we lose 50%

of investment.

Burn rate: $2 million a years. Burn rate if the company pivots to a distressed sale:

$0.5 million a years.



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Tax Loss Carry-forwards



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Making a low risk, multi bagger potential, and simple to understandbet on a

company that has more than a fair chanceof finding a cure for Alzheimers.



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Simple to Understand: Biotech is complicated. Alzheimers disease science is also

extremely complicated. However, one doesnt need to understand quantum

physics to have a general idea about atoms. The same is true with Alzheimers. All

that is needed is a basic understanding of protein behavior to understand the

detective work that leads us to believe that finding a cure for Alzheimers disease

consists of completing the job that large pharma started by attacking the rootcause of the diseaseAmyloid Beta and Tau proteins.

The largestcompanies in industry, and the smartestscientists in academics, didnt

spend two decades pursuing a dead endthey were - half right -. Promis uses the

scientific clues from these experiments in conjunction with its algorithms to

develop effective solutions to Alzheimers disease to the market.



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General consensus that Alzheimers is caused by proteins that

misfold and then propagate their shapes and toxicity to other

proteins, initiating a chain reaction like a virus. These misfolding

proteins are named prions and they are toxic to the brain.

At The American Neurological Association held in September

2015 there was a strong consensus that prions drive

neurodegenerative diseases. This consensus emerged over the

last two years.

Dr. Cashman speaker at the Presidents Symposium is

recognized as a leader in the field. Dr. Cashmans work on

prions dates way back to the mad cow diseases emergence in

the 1990s.

Promis Neurosciences with a decade long prion expertise has

built computing algorithms to model how proteins misfold into

their toxic shapes.

It is our understanding that Promis is the only company that hasa rational model for the identification of prion processes

involved in AD. Most companies approaches are plaque centric

and PET scan centric for diagnostic.



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Making a high margin of safety, multi bagger potential, and

simple to understandbet on a company that has more than a

fair chanceof finding a cure for Alzheimers.



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There are no reasons to create solutions that bind to the inertplaque or the monomer. Any solution must neutralize the prion,

only the prion.

Big pharmas products bind the monomer and/or the plaques in

all cases.

Promissmultiple monoclonal antibodies targeting six Amyloid-

Beta prion epitopes (patents filed) showing no off targetbinding.



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The pharma industry has been attempting to target these errant proteins in hopes of stopping the diseaseprogression or even reversing it. Big pharmaceutical companies like Roche, Pfizer, Eli Lilly and Johnson and Johnsondid their best to come up with treatments based on an immunotherapy approach. That is, they developed antibodies

or antibody-like molecules that, once administered, would help to destroy and clear these errant proteins. Until late

last year, all clinical trials failed. However, at the end of last year, Biogen finally showed that such a therapeuticapproach can produce a sizable benefit to AD patients.

A gold rush is now underway to develop the most effective antibodies that would target these errant proteins,

particularly beta amyloid. This is where ProMIS Neurosciences with its proprietary ProMIS technology has a big

opportunity. ProMIS is a statistical thermodynamic algorithm that predicts how proteins degenerate into their

diseased (misfolded) forms and thereby provides a model of all the potential target regions of the protein (i.e.

epitopes) against which an antibody can be designed and produced. This approach would allow to develop a specific

therapeutic antibody and its related companion diagnostic, i.e. a precision medicine solution.

The ProMIS technology works and has been validated previously on many cancer types and neurodegenerative

diseases such as Creutzfeldt-Jakob disease. Of course, ProMIS is not the only method of identifying epitopes, and the

race to find such AD epitopes is very competitive and includes many pharma companies with formidable resources at

their disposal. ProMIS does however appear to have the advantage of being a theoretical and rational approach

to epitope identification while almost all other approaches are more trial-and-error/hit-or-miss.

Dr. Greg Kenaussis

Promis versus its competition.



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Confirmation

In article titled Alzheimer's researchers find clues to toxic forms of amyloid beta the

author states:

The actual structure of these soluble oligomers remains unknown

"The scattering experiment provided an indication of structure, and there is a

chance we can use this information to gain some structural insights," Raskatov

said. "We're pretty excited about that, because if we can understand the structure

of the neurotoxic oligomers, that could help efforts to design molecules to disrupt

them.

The bottom line is that Promis understands the structure of the neurotoxic oligomers,and it has identified and created monoclonal antibodies that disrupt them.

http://news.ucsc.edu/2016/06/alzheimers-disease.htmlhttp://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/http://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/http://news.ucsc.edu/2016/06/alzheimers-disease.htmlhttp://news.ucsc.edu/2016/06/alzheimers-disease.htmlhttp://news.ucsc.edu/2016/06/alzheimers-disease.html


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Making a high margin of safety, multi bagger potential, andsimple to understandbet on a company that has more than a

fair chance of finding a cure for Alzheimers.



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Large Potential Payoff: Biogen trial results in Dec. 2014 withAducanumabled to $20BB market value increase.

$20BB is 2000 timesour ideas enterprise value.

Aducanumab is the first Alzheimers drug to show some efficacy

but it shows severe side effects at higher dose. We suspect that

binding to the plaque creates this issue. The phase 3 trials will

select patients suffering from early symptoms of Alzheimers.These patients should have less plaque which should help the

results theoretically. This highlights the shortcoming of

Aducanumab.

Our due diligence indicates that several current and former

Biogen people have confirmed that there were sub-populations of

responders in Aducanumab trials pointing to the validity of Promisassertion that they exist 6 different strains of AD associated with

Amyloid Beta.



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Seeking Partners for ALS SOD1 and TDP43. Promis has limited

resources and it must focus on its massive AD opportunity.

Seeking investors for Alzheimers Amyloid Beta and Tau to bring

the Promis solutions across the finish line to realize its multi-billion payoff.

Strategy for realizing the value.



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How do we value this opportunity and the capital it requires? The somber reality is that is extremely hard to do because it is

path dependent.

It is next to impossible to assess the value of this company, but

everyone can assess probabilities to different outcomes

according to the clues we have uncovered about Promis

Neurosciences.



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Options theory basics.

The higher the potential upside, the more valuable the call options

becomes.

The time decay of a stock as an options is its burn rate minus the economic

value accreted. The longer the maturity of the options the more valuable it becomes.

The more prone to information entropy (unexpected news) the more

valuable the options.



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As an options Promis would cost $13 million to acquire. Lets assume there is a buyer for that options at $6.5 million

(distressed buyer).

The time decay of this options is $2 million per annum (burn

rate for the next year) but we are comfortable management is

creating that much value per year. The time decay is small at

the moment. The maturity of the options depends on managements ability

to find the funds to finance the big payoff pursuit. We believe

management will be able to raise the funds to conclude the In

vitro tests.

We expect this stock to gap frequently considering the

potential news flow and the fact that this company is off theradar screen (information entropy).

The range of potential outcome is massive by judging the

reaction of the public by pushing the value of Biogen up $20

Billion on the Aducanumab results.



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Your assessment a % probability of a distressed sale at $2.5million.

A % probability of an orderly sale at $13 million.

A % probability of an exit at $50 million.

A % of hitting the jackpot ($1 billion + after investment in the

drugs).

Sum this all up. What do you get? 1x, 2x, 10x, 50x?

With its enterprise value of $13 million and the quality of its IP

portfolio, I handicap this opportunity at a potential 25x to 50x

return. A very cheap options indeed.



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Catalysts

Management/Directors/Chief Scientist bought up to 49% of

April 2016 equity raise.

Potential ALS Partnership. Q3 or Q4.

In Vitro (Alzheimers) test results will be announced inSeptember or October.



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Recap

Thank You!

Promis Neurosciences is a high margin of safety, multi bagger

potential, and simple to understand bet on a company that has

way more than a fair chance of finding a cure for Alzheimers.

If the investment doesnt work out and we lose 50% or more ofour investment, we contributed to a great experiment and

cause that will affect us personally at some points in our lives.

No matter what happens, Promis results will help other

experiments to the same extent big pharmas results are

helping Promis Neurosciences at the moment.



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ENDNOTES

Slide 1 Inspiration for the framework used in this presentation comes from ChamathPalihapitiyasAmazon.com presentation.

Slide 2 Slide 7 http://www.alz.org/downloads/Facts_Figures_2011.pdf.

Slide 15 News Release.

Slide 16 NOLs are used in the context of a valuation framework for illustration purpose

but they are rarely the source of biotech business focus.

Slide 17 Slide taken from 2015 annual report.

Slide 20, 21, 24 Source: Promis Neurosciences Presentation.

Slide 25 Source: Dr. Greg Kenaussis.

Slide 30 Source: Promis Neurosciences Presentation.

Slide 35 Source: Promis Neurosciences.

http://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012https://ch.linkedin.com/in/dr-gregory-l-kenausis-80469012http://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/http://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/http://promisneurosciences.com/news/promis-neurosciences-announces-identification-multiple-product-candidates-targeting-alzheimers-disease/http://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdfhttp://www.alz.org/downloads/Facts_Figures_2011.pdf


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Management Team

Eugene Williams, Executive Chairman

Eugene Williams is a former SVP at Genzyme, with senior roles integrating commercialization, drug development,

and deal making. He is also an entrepreneur, as the founder and director of Adheris, which became the largest

company in the patient adherence area. He was previously a strategy consultant at Bain and Corporate Decisions Inc.

(a Bain Spin off, now part of Oliver Wyman), where he was co-Head of Healthcare and spent extensive time on

speeding and improving the drug development process and on commercialization strategies. Mr. Williams was most

recently the CEO of Dart Therapeutics, an Orphan Disease drug development company. Mr. Williams holds a B.A.

from Harvard University and an M.B.A. from Harvard Business School.

Dr. Elliot Goldstein, President and CEO

Elliot Goldstein brings a unique track record in the clinical, regulatory and commercial development of new

pharmaceuticals. Dr. Goldstein began his career with Sandoz Pharmaceuticals (now Novartis), a fourteen-year period

on drug development in France, Basel, Switzerland Global Headquarters, including as Head of Clinical R&D in the

United States. He subsequently held positions as SVP of Strategic Product Development at SmithKline Beecham (now

GSK), CEO of British Biotech (Oxford, UK), Chief Operating Officer and Chief Medical Officer of Maxygen, and

President and CMO of a startup biotech devoted to development of biosimilar monoclonal antibodies. Dr. Goldstein

holds an M.D. from the University Aix-Marseille II, Marseille, France, and a B.Sc. from McGill University, Montreal.



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Scientific Team

Dr. Neil Cashman, Chief Scientific Officer and Co-founder

Dr. Cashman is a physician and scientist focused on neurodegenerative diseases. His first academic posting was at

Montreal Neurological Institute and Hospital of McGill University. From 1998 to 2005, he was the Diener Professor of

Neurodegenerative Diseases at the University of Toronto. In 2005, Professor Cashman moved to the University of

British Columbia, where he holds the Canada Research Chair in Neurodegeneration and Protein Misfolding Diseases,

and serves as the Director of the UBC ALS Centre. He has procured over $50 million in research grant funding from

the CIHR, CRC, NCE, NIH, and various corporations for his work involving protein misfolding and prion technologies.

He was awarded the Jonas Salk Prize for biomedical research in 2000, and was elected a Fellow of the Canadian

Academy of Health Sciences in 2008. He is recognized worldwide as one of the leading research scientists pioneering

the emerging fields of prion biology and protein misfolding diseases, in particular Alzheimers disease and

amyotrophic lateral sclerosis (ALS).

Steven Plotkin, Ph.D, Chief Physics Officer

Prof. Steven Plotkin is a theoretical and computational biophysicist whose research focuses on protein folding and

misfolding in neurodegenerative disease, protein evolution and cellular differentiation, and the molecular

mechanisms of cancer. He has been a professor at UBC in the Department of Physics and Astronomy since 2001,

where he was appointed as the Canada Research Chair in Theoretical Molecular Biophysics. He was an Alfred P. Sloan

Research Fellow in 2005-2006, a Killam Faculty Research Fellow in 2010, and is now an associate member of theGenome Sciences and Technology Program, the Bioinformatics Program, and the Institute for Applied Mathematics at

the University of British Columbia. Several of his publications have received the Faculty of 1000 designation, placing

them in the top 2% of published articles in biology and medicine.Plotkin is recognized internationally for his

fundamental contributions to the energy landscape theory of protein folding, and presents his research findings in

protein misfolding and neurodegeneration, and protein geometry and disorder as an invited speaker at several annual

conferences and symposia. His research is currently supported by grants from CIHR, NSERC, APRI, ALS-Canada, and

Compute Canada.



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Scientific Advisory Board (SAB)

Todd E. Golde, MD, PhD., Director of the Center for Translational Research in Neurodegenerative Disease at the University of

Florida where he directs a robust program of scientific discovery aimed at translating basic discoveries in neurodegenerative

disease into diagnostics and treatments for patients. Dr. Golde is co-chair of the SAB.

Neil R. Cashman, MD, Chief Science Officer at ProMIS Neurosciences and Professor of Medicine at the University of British

Columbia, where he holds the Canada Research Chair in Neurodegeneration and Protein Misfolding Diseases, and serves as

the Director of the UBC ALS Centre. Dr. Cashman is recognized as a pioneer in the field of prions and their role in

development of neurodegenerative diseases, in particular ALS and AD. Neil Cashman is co-chair of the SAB.

Lary C. Walker, PhD, Associate Professor of Neurology and Research Professor at Emory University Yerkes National Primate

Research Center. Lary Walkers research has been directed toward understanding the mechanisms by which the Alzheimer-

associated proteins Amyloid beta and tau form pathogenic assemblies in vivo and how these agents spread in the brain.

Business Advisory Board

Mara G. Aspinall, MBA, is a diagnostic industry pioneer. She is Executive Chairman of GenePeeks, a company leading a

paradigm shift at the intersection of personalized medicine and computational genomics with genetic testing. Mara is the

former President and CEO of Ventana Medical Systems, a division of Roche Group, a worldwide leader in the development

and commercialization of tissue-based cancer diagnostics.

Nigel Burns, PhD, has over 20 years experience in the biotech sector, in particular in the field of monoclonal antibodies for

the treatment of chronic disease. Nigel has held a series of industry leadership roles including Senior Vice President of

Cambridge Antibody Technology, and most recently, CEO and Founder of SweetSpot Therapeutics Ltd. Nigel was

entrepreneur-in-residence for Imperial Innovations and has served on multiple national and international scientific and

industry advisory boards and committees.

Michael Higgins, MBA, is currently an entrepreneur-in-residence at Polaris Partners. Previously at Genzyme, Mr. Higgins

held a variety of leadership roles, including Vice President of Corporate Finance and Vice President of Business

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multi-billion dollar microcap opportunity hiding in a dark alley

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