PTIX Stock Jumps 188% Following Phytanix Merger

Company to Advance Diversified CNS Pipeline with Six Drug Candidates Following Merger.

Protagenic Therapeutics (Nasdaq: PTIX) and Phytanix Bio have announced a business combination. The new company will be called Phytanix, Inc. The combined pipeline includes six drug candidates. These target central nervous system (CNS), stress-related, and metabolic disorders. As a result, the newly formed entity will manage five preclinical and one clinical-stage asset.

Lead Candidate Overview

• PT-00114: A Phase I/IIa peptide for stress-related anxiety and depression.
• PHYX-001: A potassium channel modulator in development for epilepsy and seizure disorders.
• Cannabinoid assets: Targeting CNS, obesity, and metabolic diseases
• Modified stilbenoid assets: Show anticonvulsant activity in preclinical models

Additionally, the new company will benefit from an expanded patent estate and development team. Former GW Pharma team members bring CNS experience, including work on Epidiolex and Sativex. This merger adds diversity to Protagenic's stress-disorder portfolio. Furthermore, it also positions the combined entity to pursue key milestones within the next 18 months.

Financial Terms of the Transaction

As part of the deal, PTIX issued 117,690 shares of common stock to Phytanix Bio's shareholders. This accounts for no more than 19.99% of PTIX's shares before the merger on May 16. PTIX also issued 5,705 shares of Series C Convertible Preferred Stock and 950,000 shares of Series C-1 Convertible Preferred Stock.

Phytanix Bio's preferred shareholders also received 20,000 shares of Series D Preferred Stock. They received warrants to purchase 715,493 shares of common stock. PTIX issued these securities on May 16, 2025. Each preferred share includes terms that allow conversion into common stock, subject to conditions in the agreement.

After the merger, PTIX shareholders own about 35% of the combined company. Phytanix Bio shareholders hold the remaining 65%. Converting the preferred stock and exercising the warrants requires shareholder approval, per Nasdaq rules.

The post PTIX Stock Jumps 188% Following Phytanix Merger appeared first on PRISM MarketView.

COMTEX_465631927/2927/2025-05-19T11:01:09