NEW YORK - Protagenic Therapeutics, Inc. (NASDAQ:PTIX), a biopharmaceutical company with a market capitalization of $1.64 million, has announced a reverse stock split of its common stock at a 1-for-14 ratio, effective May 5, 2025, at 12:01 a.m. Eastern Time. This move aims to comply with Nasdaq’s minimum bid price requirement for continued listing. The decision comes as the company’s stock, currently trading at $0.22, has declined over 84% in the past year. According to InvestingPro analysis, the company’s financial health score stands at a concerning 1.14, labeled as "WEAK."
The decision was made following shareholder approval on April 18, 2025, authorizing the Board of Directors to implement a reverse stock split at a ratio between 1-for-10 and 1-for-20. The Board chose the specific 1-for-14 ratio within this range. Post-split, the company’s common stock will maintain the "PTIX" ticker symbol on the Nasdaq Capital Market with a new CUSIP number of 74365N301. InvestingPro data reveals the company is quickly burning through cash and analysts do not anticipate profitability this year, with an expected EPS of -$3.08 for 2025.
The reverse stock split will convert every fourteen shares of existing common stock into one share. Fractional shares resulting from the split will be rounded up to the nearest whole share. Stockholders need not take any action if their shares are held in book-entry form or through a bank, broker, or other nominee. However, stockholders of record will receive information from Protagenic’s transfer agent, Equiniti Trust Company, LLC, about their post-split stock ownership.
The company anticipates a reduction in outstanding shares from approximately 8.24 million to around 588,750, subject to adjustments for fractional shares. Proportionate adjustments will also be made to outstanding equity awards’ exercise prices and the number of shares underlying them, as well as to shares issuable under equity incentive plans and certain existing agreements.
Stockholders holding pre-split stock certificates will be issued a letter of transmittal with instructions for surrendering their certificates, but are advised not to send their pre-split certificates until they receive this letter. Unless a new paper certificate is requested or shares are restricted, stockholders of record with pre-split certificates will receive their post-split shares in book-entry form along with a statement from Equiniti regarding their ownership after the reverse stock split.
Further details about the reverse stock split can be found in the Company’s proxy statement filed with the SEC on March 10, 2025, available on the SEC’s website and Protagenic Therapeutics’ investor relations page.
This news is based on a press release statement from Protagenic Therapeutics, Inc.
In other recent news, Protagenic Therapeutics, Inc. has made several significant corporate decisions. During a special meeting, the stockholders authorized the Board of Directors to implement a reverse stock split, with a potential ratio between 1-for-10 and 1-for-20, if necessary. This approval provides the Board the discretion to decide the exact ratio and timing before January 31, 2026. Additionally, stockholders approved a proposal to adjourn the meeting to gather more proxies if needed, supporting the company’s flexibility in managing its capital structure.
In another development, the Board of Protagenic Therapeutics decided to reprice certain outstanding stock options, following stockholder approval at the Annual Meeting. Originally set between $4.00 and $19.92 per share, these options have been adjusted to $0.2655 per share. This adjustment aligns with the closing price on the day of the Annual Meeting and is viewed as a move to incentivize employees by making stock options more appealing. These actions reflect the company’s recent valuation and are part of its strategy to navigate the biotech industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.