Protagenic Therapeutics stockholders approve reverse split authority

Published 18/04/2025, 18:44
Protagenic Therapeutics stockholders approve reverse split authority

In a decisive move, stockholders of Protagenic Therapeutics, Inc. (NASDAQ:PTIX) authorized the Board of Directors to implement a reverse stock split if deemed necessary. The special meeting held on April 18, 2025, saw a majority vote in favor of the potential amendment to the company’s Third Amended and Restated Certificate of Incorporation. The decision comes as the company’s stock has declined over 82% in the past year, according to InvestingPro data, which also reveals the company’s market capitalization has dropped to $1.81 million.

The reverse stock split proposal, which could range between 1-for-10 and 1-for-20 ratios, received 3,560,865 votes for, 333,824 against, and 155,274 abstentions. The Board now has the discretion to determine the exact ratio and timing before January 31, 2026, while also retaining the right to abandon the amendment. InvestingPro analysis indicates the company is quickly burning through cash, with a weak Financial Health Score of 1.25 out of 5.

Furthermore, stockholders approved a secondary proposal to adjourn the special meeting, if necessary, to solicit additional proxies in support of the reverse stock split. This motion passed with 3,552,086 votes for, 336,677 against, and 161,200 abstentions.

The approval grants the Board flexibility in managing the company’s capital structure and aligns with common practices for companies seeking to optimize their stock performance and meet continued listing requirements. No broker non-votes were recorded for either proposal.

The decisions come at a time when Protagenic Therapeutics, a pharmaceutical company with a focus on the development of therapeutic compounds, is navigating the complexities of the biotech industry. The company, which has undergone several name changes in its history, is now positioned to adjust its share structure as it continues its mission in the pharmaceutical preparations sector.

The information reported is based on the official statement from the company’s SEC filing.

In other recent news, Protagenic Therapeutics Inc. announced the repricing of certain outstanding stock options. This decision, approved by stockholders during the Annual Meeting on February 21, 2025, adjusts the exercise prices from an original range of $4.00 to $19.92 per share to a new price of $0.2655 per share. The adjustment aligns with the closing price of the company’s common stock on the date of the meeting. The move could potentially impact the financial interests of option holders by significantly lowering the exercise price for purchasing company shares. Such a decision might be interpreted as an effort to make stock options more appealing to employees, given the current stock price. These developments were detailed in a filing with the Securities and Exchange Commission on February 24, 2025. Investors may view this as a significant change in the company’s compensatory arrangements for certain officers and directors. The implications of this adjustment on Protagenic Therapeutics’ financial performance remain to be observed.

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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