This Biotech Company Specializing in Brain Disorder Treatments Reports a Stronger Cash Position

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Pasithea Therapeutics Corp. KTTA, a biotech company that is dedicated to researching and developing new treatments for psychiatric and neurological disorders, announced the successful closing of its $30.4 million private placement priced at a premium to the market under Nasdaq Stock Exchange regulation.

Pasithea sold an aggregate of 8.68 million shares of common stock and warrants to purchase 8.68 million shares of common stock at a purchase price of $3.50 per share. 

The gross proceeds to Pasithea from the private placement came in at $30.4 million, before deducting the placement agent's fees and other estimated offering expenses. EF Hutton, a division of Benchmark Investments, LLC acted as an exclusive placement agent for the offering.

The move could be noteworthy as it may significantly improve Pasithea’s cash position, especially in comparison to the company’s market cap of $57.12M. 

Pasithea stated that it plans to use the net proceeds from the private placement to fund preclinical research and development work for future product candidates, especially those that target psychiatric and neurological disorders. The company also aims to use the additional capital to invest in developing its U.S. and U.K. clinic businesses as well as funding more general corporate expenses.

Other notable biotech companies in the space include ABVC Biopharma Inc. ABVC and ANI Pharmaceuticals Inc. ANIP. 

The company boasts a team of experienced experts in the fields of neuroscience and psychopharmacology. Professor Lawrence Steinman, endowed chair in the neurology department at Stanford University is the chairman of Pasithea while Dr. Tiago Reis Marques, a psychiatric lecturer at King's College with experience in the biological mechanisms of mental illness is the CEO.

Another component of Pasithea’s business model focuses on addressing the needs of patients with mental illness through IV ketamine treatments. In the U.S., Pasithea partnered with The I.V. Doc®, an operator of mobile clinics, to offer intravenous infusions of ketamine to treat treatment-resistant depression (TRD).

The company also maintains a presence at London clinics, specifically through its partnership with Zen Healthcare and 2 of its central London clinics in Knightsbridge and Marylebone.

To learn more about Pasithea’s ongoing therapeutic solutions, latest developments, and investor information, you can visit the company’s IR site or pasithea.com.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.