Pasithea Therapeutics Corp. (NASDAQ:KTTA) Stock Gains After Private Placement

The clinical stage biotech firm Pasithea Therapeutics Corp. (NASDAQ:KTTA) had been in considerable focus yesterday, and that became apparent in the 52% gain recorded by its stock on Thursday.

Pasithea Therapeutics Announces $5 Million Private Placement Priced At-The-Market Under Nasdaq Rules

On September 26, the company announced that it had inked definitive agreements pertaining to the issuance as well as sale of a total of 1,219,513 shares of its common stock. Along with that, the company would also offer associated Series A warrants for picking up 1,219,513 shares of the common stock, accompanying short-term Series B warrants for purchasing 1,219,513 shares of the common stock for the price of $4.10 each, and associated warrants for a private placement as per the at-the-market rules of NASDAQ.

It was also revealed that the Series A and the short-term Series B warrants would have an exercise price of $3.85 a share and could be exercised right after issuance. The Series A warrants would expire five years from the date of issuance, while the short-term Series B warrants would expire 18 months from the date of issuance. Pasithea Therapeutics also stated in the news release that the offering was expected to be closed around 30 September 2024, provided all the regular closing conditions are met.