Protagenic Therapeutics and Phytanix merge in all stock deal

US biotechs Protagenic Therapeutics (Nasdaq: PTIX) and Phytanix Bio have entered into a definitive share exchange agreement pursuant to which the two entities will combine in an all-stock transaction.

The combined entity, to be called Phytanix Ltd, will bring together two pipelines focused on stress-related and CNS disorders, five pre-clinical assets and one clinical-stage asset.

Under the agreed terms, Protagenic issued common and preferred stock, along with warrants, to Phytanix shareholders in exchange for the latter’s outstanding stock. Upon completion of the share-exchange transaction on May 16, Phytanix stockholders own nearly 65% of the combined entity, leaving approximately 35% ownership for Protagenic stockholders. Shares of the latter soared as much as 306% on Monday.