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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of Earliest event Reported):
March 20, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROTEA BIOSCIENCES GROUP, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: Black 1pt solid; text-align: center">Delaware</TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid; text-align: center">000-51474</TD>
    <TD STYLE="width: 32%; border-bottom: Black 1pt solid; text-align: center">20-2903252</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of incorporation or organization)</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">955 Hartman Run Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Morgantown, West Virginia 26507</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(304) 292-2226</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;(Former name or former address, if
changed since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (<U>see</U> General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 7%"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 90%">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pre-commencement communications pursuant to Rule 13e-4(c) under
        the Exchange Act (17 CFR 240.13e-4(c))</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 2.03&#9;Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 20,
2012, Protea Biosciences Group, Inc. (the &ldquo;Company&rdquo;) issued a convertible debenture (the
&ldquo;Debenture&rdquo;), dated as of March 15, 2012, for an aggregate principal amount of $290,000 (the &ldquo;Principal
Amount&rdquo;) to the West Virginia Jobs Investment Trust Board (the &ldquo;WVJITB&rdquo;), evidencing a convertible loan in
that amount from the WVJITB to finance the construction and leasehold improvements required in connection with the
Company&rsquo;s newly leased premises. The Debenture accrues interest at a rate of 6% per annum and is subordinated
to outstanding senior indebtedness of the Company. The entire Principal Amount is due on September 14, 2012 (the
&ldquo;Maturity Date&rdquo;) and all accrued and unpaid interest is due and payable in cash monthly, beginning on April 14,
2012 through and including the Maturity Date. At the option of the WVJITB and upon ten days prior written notice to the
Company, the Debenture is convertible into shares of common stock of the Company, at an initial conversion rate of $2.00 per
share, subject to certain adjustments. Upon the occurrence of any one of the following events, the entire Principal Amount
and accrued unpaid interest is immediately due and payable: (i) the failure of the Company to pay any accrued unpaid interest
on the Principal Amount when due and payable; (ii) the breach by the Company of any covenant or other term or condition set
forth in the Debenture; (iii) the insolvency or admission in writing by the Company of its inability to pay its debts as they
mature; an assignment for the benefit of a creditor; the institution of bankruptcy, insolvency, reorganization or
liquidation proceedings or other proceedings under any bankruptcy law or any law for the relief of debtors against the
Company or the appointment of, or consent to appoint a receiver or trustee for the Company or for a substantial part of its
property or business; and (iv) the failure by the Company to pay or default on any other material obligation or agreement for
money borrowed which continues for 120 days or greater. Upon the issuance of the Debenture, the Company also issued a warrant
to the WVJITB, dated as of March 15, 2012, to purchase 72,500 shares of common stock of the Company at an exercise price
of $2.25 per share (the &ldquo;Warrant&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The description of
the terms and conditions of the Debenture set forth herein is intended to be a summary only and is qualified in its entirety by
the terms and conditions of the Warrant set forth in Exhibit 4.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02&#9;Recent Sales of Unregistered Securities. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 20, 2012,
for an aggregate purchase price equal to the Principal Amount, the Company issued the Debenture and the Warrant to the WVJITB.
The terms of the Debenture set forth above are incorporated herein by this reference. The Warrant is exercisable at an exercise
price of $2.25 per share any time after the date of issuance (the &ldquo;Issue Date&rdquo;) until the earlier of (i) a Qualified
Public Offering (as defined below), or (ii) 5:00 p.m. Eastern time on the fifth anniversary of the Issue Date of the Warrant. The
term &ldquo;Qualified Public Offering&rdquo; means the closing of a firm commitment underwritten offering pursuant to an effective
registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company in which
the net cash proceeds to the Company (after deduction of underwriting discounts, commissions and fees) are at least $15,000,000.
The Debenture and the Warrant were issued pursuant to the exemption from registration provided by section 4(2) <FONT STYLE="color: black">under
the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) in reliance upon the representation by WVJITB that it
is an</FONT> accredited investor as such term is defined by <FONT STYLE="color: black">Rule&nbsp;501 of Regulation D under the
Securities Act and t</FONT>he Company did not engage in any general advertisement or general solicitation in connection with the
offer and sale of the Debenture and Warrant. The Company did not pay any commission in connection with the sale of the Debenture
and Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The above description
of the Warrant is intended to be a summary only and is qualified in its entirety by the terms of the Warrant attached hereto as
Exhibit 4.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01.&#9;Exhibits and Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.1.</TD><TD STYLE="text-align: justify">Convertible Debenture, dated as of March 15, 2012</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.2</TD><TD STYLE="text-align: justify">Warrant, dated as of March 15, 2012</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>Dated: March 26, 2012</TD>
    <TD COLSPAN="2"><B>PROTEA BIOSCIENCES GROUP, INC.</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 37%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="text-decoration: none; border-bottom: Black 1pt solid">/s/ Stephen Turner</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;Stephen Turner</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;Chief Executive Officer</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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{"company-data": {"conformed-name": "Protea Biosciences Group, Inc.", "cik": "0001335103", "assigned-sic": "2834", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51474", "film-number": "12715190"}, "business-address": {"street1": "955 HARTMAN RUN ROAD", "city": "MORGANTOWN", "state": "WV", "zip": "26507", "phone": "304 292-2226"}, "mail-address": {"street1": "955 HARTMAN RUN ROAD", "city": "MORGANTOWN", "state": "WV", "zip": "26507"}, "former-company": [{"former-conformed-name": "Protea Biosciences Inc.", "date-changed": "20110908"}, {"former-conformed-name": "SRKP 5 INC", "date-changed": "20050803"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest event Reported):
March 20, 2012
PROTEA BIOSCIENCES GROUP, INC.
(Exact name of registrant as specified in
its charter)
Delaware
000-51474
20-2903252
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(IRS Employer Identification No.)
955 Hartman Run Road
Morgantown, West Virginia 26507
(Address of principal executive offices)
(304) 292-2226
(Registrant's telephone number, including
area code)
(Former name or former address, if
changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (
see
General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under
        the Exchange Act (17 CFR 240.13e-4(c))
Item 2.03	Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On March 20,
2012, Protea Biosciences Group, Inc. (the "Company") issued a convertible debenture (the
"Debenture"), dated as of March 15, 2012, for an aggregate principal amount of $290,000 (the "Principal
Amount") to the West Virginia Jobs Investment Trust Board (the "WVJITB"), evidencing a convertible loan in
that amount from the WVJITB to finance the construction and leasehold improvements required in connection with the
Company's newly leased premises. The Debenture accrues interest at a rate of 6% per annum and is subordinated
to outstanding senior indebtedness of the Company. The entire Principal Amount is due on September 14, 2012 (the
"Maturity Date") and all accrued and unpaid interest is due and payable in cash monthly, beginning on April 14,
2012 through and including the Maturity Date. At the option of the WVJITB and upon ten days prior written notice to the
Company, the Debenture is convertible into shares of common stock of the Company, at an initial conversion rate of $2.00 per
share, subject to certain adjustments. Upon the occurrence of any one of the following events, the entire Principal Amount
and accrued unpaid interest is immediately due and payable: (i) the failure of the Company to pay any accrued unpaid interest
on the Principal Amount when due and payable; (ii) the breach by the Company of any covenant or other term or condition set
forth in the Debenture; (iii) the insolvency or admission in writing by the Company of its inability to pay its debts as they
mature; an assignment for the benefit of a creditor; the institution of bankruptcy, insolvency, reorganization or
liquidation proceedings or other proceedings under any bankruptcy law or any law for the relief of debtors against the
Company or the appointment of, or consent to appoint a receiver or trustee for the Company or for a substantial part of its
property or business; and (iv) the failure by the Company to pay or default on any other material obligation or agreement for
money borrowed which continues for 120 days or greater. Upon the issuance of the Debenture, the Company also issued a warrant
to the WVJITB, dated as of March 15, 2012, to purchase 72,500 shares of common stock of the Company at an exercise price
of $2.25 per share (the "Warrant").
The description of
the terms and conditions of the Debenture set forth herein is intended to be a summary only and is qualified in its entirety by
the terms and conditions of the Warrant set forth in Exhibit 4.1 to this Current Report on Form 8-K.
Item 3.02	Recent Sales of Unregistered Securities.
On March 20, 2012,
for an aggregate purchase price equal to the Principal Amount, the Company issued the Debenture and the Warrant to the WVJITB.
The terms of the Debenture set forth above are incorporated herein by this reference. The Warrant is exercisable at an exercise
price of $2.25 per share any time after the date of issuance (the "Issue Date") until the earlier of (i) a Qualified
Public Offering (as defined below), or (ii) 5:00 p.m. Eastern time on the fifth anniversary of the Issue Date of the Warrant. The
term "Qualified Public Offering" means the closing of a firm commitment underwritten offering pursuant to an effective
registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company in which
the net cash proceeds to the Company (after deduction of underwriting discounts, commissions and fees) are at least $15,000,000.
The Debenture and the Warrant were issued pursuant to the exemption from registration provided by section 4(2)
under
the Securities Act of 1933, as amended (the "Securities Act") in reliance upon the representation by WVJITB that it
is an
accredited investor as such term is defined by
Rule 501 of Regulation D under the
Securities Act and t
he Company did not engage in any general advertisement or general solicitation in connection with the
offer and sale of the Debenture and Warrant. The Company did not pay any commission in connection with the sale of the Debenture
and Warrant.
The above description
of the Warrant is intended to be a summary only and is qualified in its entirety by the terms of the Warrant attached hereto as
Exhibit 4.1 to this Current Report on Form 8-K.
Item 9.01.	Exhibits and Financial Statements
4.1.
Convertible Debenture, dated as of March 15, 2012
4.2
Warrant, dated as of March 15, 2012
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: March 26, 2012
PROTEA BIOSCIENCES GROUP, INC.
By:
/s/ Stephen Turner
Stephen Turner
Chief Executive Officer