Protagenic Therapeutics raises $3.1 million from warrants

Published 21/05/2025, 14:22
Protagenic Therapeutics raises $3.1 million from warrants

NEW YORK - Protagenic Therapeutics, Inc. (NASDAQ:PTIX), a biotechnology firm focused on developing peptide-based treatments for stress-related and central nervous system disorders, has announced the generation of $3.1 million in cash through warrant exchanges and exercises during the last four trading days. The company stated that these funds will support its working capital requirements and further the development of its drug candidates. The timing appears strategic, as InvestingPro data shows the stock has gained nearly 110% in the past week, though trading at a premium to its Fair Value. With a market capitalization of $3.7 million, the company maintains more cash than debt on its balance sheet.

The recent influx of capital follows the company’s business combination with Phytanix Bio Inc., which was completed on May 19, 2025. This strategic move combined six drug programs targeting a variety of conditions, including stress disorders, epilepsy, and obesity, under the Protagenic Therapeutics umbrella. According to InvestingPro analysis, the company faces near-term challenges with a current ratio of 0.86, indicating short-term obligations exceed liquid assets. Subscribers to InvestingPro can access 9 additional key insights about PTIX’s financial health and growth prospects.

Protagenic Therapeutics is known for its pioneering work in peptide therapies for stress-related conditions. Phytanix Bio, on the other hand, has been recognized for its innovative approach to pharmaceutical development, focusing on medicines derived from cannabinoids and cannabinoid-like molecules. The company’s financial metrics reveal challenges ahead, with analysts projecting a significant drop in net income for 2025 and an EPS forecast of -$43.14.

The press release issued by Protagenic Therapeutics included forward-looking statements regarding their product candidates and clinical trial plans. However, the company cautioned investors about the inherent risks and uncertainties in such statements, advising against placing undue reliance on them.

The news of this financial milestone comes as Protagenic Therapeutics continues to advance its therapeutic programs. The company’s efforts are part of a broader trend in the biotech industry to explore and develop new treatments for complex disorders.

Investors and interested parties can find more information about Protagenic Therapeutics and Phytanix Bio on their respective websites. The details provided in this article are based on the press release statement issued by Protagenic Therapeutics.

In other recent news, Protagenic Therapeutics has announced a significant merger with Phytanix Bio Inc., resulting in the formation of a new entity named Phytanix, Inc. This merger combines the companies’ pipelines, including six drug candidates and a peptide asset in Phase I/IIa trials, potentially qualifying for regulatory data exclusivity. Protagenic shareholders will hold approximately 35% of the new entity, while Phytanix Bio stockholders will own about 65%. In addition, Protagenic Therapeutics has entered into a Warrant Exchange Agreement with an investor, exchanging 459,420 warrants for 367,544 shares of common stock, a move aimed at enhancing its financial strategy. The company has also executed a 1-for-14 reverse stock split to comply with Nasdaq’s minimum bid price requirement, reducing the number of outstanding shares significantly. This reverse stock split was authorized by shareholders during a special meeting, where they approved the Board’s discretion to implement the split if necessary. These developments reflect Protagenic Therapeutics’ strategic efforts to strengthen its financial position and expand its drug development capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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