Pasithea Stock Plunges After Equity Raise of $30M

Pasithea Therapeutics Corp KTTA shares shed their gains from yesterday after it announced a private offering of 8.68 million shares and warrants to purchase 8.68 million shares.

• The offer price of $3.50 per share represents a steep discount of 38% from the last close price of $5.60 that more than doubled on Tuesday.
• Related Link: EXCLUSIVE: Pasithea's Depression Treatment, Esketamine Nasal Spray Added In Clinic Offerings In UK.
• The gross proceeds are expected to be approximately $30.4 million.
• The warrants will be immediately exercisable and have an exercise price of $3.50 per share. 
• The warrants will expire five years from the date of issuance. 
• The offering is expected to close by November 29.
• Pasithea will use the proceeds to fund pre-clinical research and development work for future product candidates, invest in developing the US and the UK clinic businesses, and for working capital and general corporate purposes.
• Price Action: KTTA shares are down 26.1% at $4.14 during the market session on the last check Wednesday.