On October 26, 2026, Vistagen Therapeutics, Inc. (the "Company") implemented a Board-approved reduction in workforce by approximately 31%, retaining core clinical, regulatory, technical, and corporate capabilities required for U.S. registration-directed Phase 3 development of fasedienol, its lead clinical-stage product candidate for treatment of social anxiety disorder, as well as potential future development of its lead Phase 2 product candidates, itruvone for major depressive disorder and refisolone for menopausal hot flashes. The reduction is intended to reduce operating expenses, preserve capital with cost efficiencies, and align the size and structure of its workforce with its late clinical-stage priorities.

 

In connection with the reduction in its workforce, affected employees may receive cash severance and temporary healthcare coverage if they are eligible for and elect such coverage and enter into an effective separation agreement, which will include a general release of claims against the Company. The Company estimates that it will incur severance and termination costs of approximately $1.0 million. The reduction in workforce is expected to save approximately $3.2 million in salary and benefits annually. The Company may also incur additional costs not currently contemplated due to events that may occur because of, or that are associated with, the reduction in its workforce.

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