Protagenic Therapeutics issues $250,000 promissory note to Patness LLC

Protagenic Therapeutics, Inc. (OTCQB:PTIX) has entered into a promissory note agreement with Patness LLC, agreeing to borrow $250,000. This financing comes as the company faces liquidity pressures. The company, with a market capitalization of $980,000, has a current ratio of 0.66, indicating that its short-term obligations exceed its liquid assets.

The promissory note carries a simple interest rate of 1.0% per annum, with the outstanding principal and accrued interest due upon the closing of an equity capital raise of at least $1,000,000 or 180 days from the note's maturity date. If all obligations are paid before 365 days, any accrued interest will be forgiven. The note includes events of default, such as failure to pay amounts due or breach of material covenants, which could result in immediate payment of all obligations.

Protagenic Therapeutics may prepay the note without penalty at any time, and the note was issued under an exemption from registration under the Securities Act of 1933.