Protagenic Therapeutics Announces Major Restructuring: Transitions To Virtual Operating Model, Cuts $8M In Annual Costs, Halts Preclinical Programs, Terminates CEO And COO, Changes Fiscal Year-End, And Refocuses On Lead Clinical Trial For PT00114

Author: Benzinga Newsdesk | August 13, 2025 06:18pm

Item 2.05 Costs Associated with Exit or Disposal Activities.

 

On August 8, 2025, the Board of Directors (the "Board") of Protagenic Therapeutics, Inc. (the "Company" or "Protagenic") approved a focused restructuring plan (the "Restructuring Plan") to transition to a virtual operating model and concentrate capital on the Company's highest-priority clinical program(s). In approving the Restructuring Plan, the Board determined that a disciplined cost structure and a sharper focus on near-term value inflection are in the best interests of the Company and its stockholders.

 

Under the Restructuring Plan, the Company has (i) temporarily suspended expenditures related to its preclinical programs and (ii) initiated a process to evaluate strategic alternatives for those programs, including partnerships and/or out-licensing, with the objective of advancing them with appropriate external funding while preserving cash for the Company's lead clinical assets. The Company is reducing operating expenses, overhead, and headcount primarily associated with preclinical activities.

 

When fully implemented, the Restructuring Plan is expected to reduce annualized operating expenses by approximately $8 million. The Company expects to incur one-time charges in connection with the Restructuring Plan; however, because key actions remain in process, the Company cannot reasonably estimate the total amount or timing of such charges at this time and will provide an update in a subsequent filing once such amounts are estimable.

 

 

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On August 8, 2025, in connection with the Restructuring Plan, the Board a terminated the employment of (i) Barrett Evans as Chief Executive Officer and President and (ii) Colin Stott as Chief Operating Officer, in each case effective immediately. Messrs. Evans and Stott remain members of the Company's Board of Directors. Any severance or other compensatory agreements, if applicable, will be disclosed when determined.

 

 

 

 

 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

On August 7, 2025, the Board approved a change in the Company's fiscal year-end from December 31 to March 31, effective immediately. The Company intends to file a transition report on Form 10-QT with the Securities and Exchange Commission for the transition period beginning April 1, 2025 and ending June 30, 2025. 

 

Item 8.01 Other Events.

 

The Company provides the following operational update in connection with the Restructuring Plan:

 

	1.	Clinical focus. The Company will allocate available resources to efficiently execute the ongoing Phase 2 clinical trial of PT00114 (peptide analogue), which the Company currently expects to complete in approximately 9 to 12 months, subject to enrollment and other customary factors.

 

2.

Preclinical programs. All preclinical programs originated with former Phytanix Bio (PHYX-001, PHYX-002, PHYX-003, PHYX-004, and PHYX-005) have been paused. The Company will actively pursue strategic alternatives, including partnerships or out-licensing, to advance these assets with appropriate funding while conserving cash.

 

3.

Operating model. The Company is transitioning to a virtual operating model to minimize burn while prioritizing its clinical-stage program(s). Workforce reductions include the elimination of the Chief Executive Officer, President, and Chief Operating Officer positions and certain roles primarily associated with preclinical operations, regulatory affairs, and intellectual property functions.

 

4.

Targeted expertise. The Company expects to retain external consultant(s), as needed, with cumulative annual fees not anticipated to exceed $200,000, to provide subject-matter expertise in cannabinoid-related drug development.

 

Posted In: PTIX