24/7 Market News Snapshot 26 September, 2024 – Pasithea Therapeutics Corp. Common Stock (NASDAQ:KTTA)

September 26, 2024

DENVER, Colo., 26 September, 2024 (247marketnews.com) – (NASDAQ:KTTA) are discussed in this article.
Pasithea Therapeutics Corp. (NASDAQ:KTTA) has gained significant traction in the market, capturing investor interest with a remarkable surge in stock value. The company opened trading at $7.09 and at one point witnessed an impressive increase of over 38%, with current trading hovering around $5.316 on a staggering volume of 56.94 million shares. This surge reflects strong market optimism surrounding the firm’s innovative therapeutic approaches within the biotech sector, indicating a potential for further growth as the company navigates this pivotal period.

In parallel, Pasithea has reached a significant milestone by completing definitive agreements for a private placement that will generate approximately $5 million in gross proceeds. The transaction, priced at $4.10 per share, involves the issuance and sale of 1,219,513 shares of common stock and accompanying Series A and short-term Series B warrants. The raised funds are earmarked to advance the company’s clinical initiatives, specifically the ongoing Phase 1 trial for PAS-004, a next-generation macrocyclic MEK inhibitor designed to treat Neurofibromatosis Type 1 (NF1), with potential applications in oncology.

H.C. Wainwright & Co. has facilitated the private placement, which is expected to close on or about September 30, 2024, contingent upon standard closing conditions. The warrants included in the placement offer additional flexibility for future capital utilization, as the Series A warrants are exercisable at $3.85 per share for five years, and the Series B warrants are valid for 18 months.

With this combination of robust market performance and successful fundraising efforts, Pasithea is strategically positioning itself to accelerate the development of therapies addressing critical medical needs in CNS disorders and beyond. The company’s commitment to innovation and patient care remains steadfast as it advances its pipeline of potential treatments.

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