Pasithea Therapeutics Announces Closing of $5 Million Public Offering

Rhea-AI Summary

Pasithea Therapeutics (NASDAQ: KTTA) has closed its previously announced public offering, raising total gross proceeds of approximately $6.3 million. The offering consisted of 3,571,428 shares of common stock (or pre-funded warrants) and accompanying Series C and D warrants at $1.40 per share. The company received $5.0 million from the initial offering and an additional $1.3 million from the immediate exercise of Series D warrants by certain investors.

The Series C warrants have a 5-year term while Series D warrants expire in 18 months, both with an exercise price of $1.40 per share. H.C. Wainwright & Co. served as the exclusive placement agent. The funds will support general corporate purposes, including research, clinical trials, technology development, potential acquisitions, and working capital.

Positive

• Raised total gross proceeds of $6.3 million to fund operations and development
• Additional $1.3 million received from immediate warrant exercises, showing investor confidence
• Funds will support ongoing research, clinical trials, and development of PAS-004 for NF1 treatment

Negative

• Share offering will cause dilution for existing shareholders
• Warrants could lead to further dilution if exercised

Insights

Financial Analyst

Pasithea raises $6.3M through equity offering and warrant exercises to fund clinical development of its MEK inhibitor for NF1 and cancer indications.

Pasithea Therapeutics has successfully completed a $5 million public offering with an additional $1.3 million from immediate warrant exercises, securing total gross proceeds of $6.3 million. The offering was structured as 3,571,428 shares (or pre-funded warrants) priced at $1.40 per share, with each unit including both Series C warrants (5-year term) and Series D warrants (18-month term) to purchase additional shares.

The capital raise features several noteworthy elements. First, some investors exercised Series D warrants immediately after issuance, purchasing 914,286 shares and generating the additional $1.3 million. Second, both warrant series carry the same exercise price as the offering ($1.40), suggesting the company wasn't willing to discount future purchases.

For a clinical-stage biotech without product revenue, this financing provides essential capital for continued operations. The company has outlined broad intended uses for the proceeds: ongoing research, pre-clinical studies, clinical trials, technology development, potential M&A or licensing activities, and working capital.

Pasithea's core asset is PAS-004, a next-generation macrocyclic MEK inhibitor being developed for neurofibromatosis type 1 and other cancer indications. The $6.3 million infusion should help advance this program, though the press release doesn't specify how long this capital will sustain operations or which specific development milestones it enables.

H.C. Wainwright & Co. served as the exclusive placement agent for the transaction, which was conducted through a registration statement filed with the SEC on May 1 and declared effective on May 6, 2025.

Additional Gross Proceeds of Approximately $1.3 Million Received Upon Exercise of Certain Warrants Issued in the Public Offering

MIAMI, May 07, 2025 (GLOBE NEWSWIRE) -- Pasithea Therapeutics, Corp. (“Pasithea,” or the “Company”) (Nasdaq: KTTA; KTTAW), a clinical-stage biotechnology company developing PAS-004, a next-generation macrocyclic MEK inhibitor, for the treatment of neurofibromatosis type 1 (NF1) and other cancer indications, today announced the closing of its previously announced public offering of 3,571,428 shares of its common stock (or pre-funded warrants in lieu thereof) and accompanying Series C warrants to purchase up to 3,571,428 shares of common stock and Series D warrants to purchase up to 3,571,428 shares of common stock, at a combined offering price of $1.40 per share of common stock (or per pre-funded warrant in lieu thereof) and accompanying warrants.

The Series C warrants have an exercise price of $1.40 per share, are exercisable upon issuance and will expire five years thereafter. The Series D warrants have an exercise price of $1.40 per share, are exercisable upon issuance and will expire 18 months thereafter. Simultaneously with the closing of the offering, certain investors exercised Series D warrants to purchase an aggregate of 914,286 shares of common stock, resulting in additional gross proceeds to the Company of approximately $1.3 million.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

Total gross proceeds to the Company from the offering were $5.0 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The aggregate gross proceeds from the offering and the exercise of the Series D warrants were approximately $6.3 million. The Company intends to use the total net proceeds received from the offering for general corporate purposes, which includes, without limitation, ongoing research and pre-clinical studies, clinical trials, the development of new biological and pharmaceutical technologies, investing in or acquiring companies that are synergistic with or complementary to the Company’s technologies, licensing activities related to its current and future product candidates, and to the development of emerging technologies, investing in or acquiring companies that are developing emerging technologies, licensing activities, or the acquisition of other businesses and working capital.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-286889) originally filed with the Securities and Exchange Commission (“SEC”) on May 1, 2025 and declared effective on May 6, 2025. The offering was made only by means of a prospectus, which is part of the effective registration statement. A final prospectus relating to the offering has been filed with the SEC and is available for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Pasithea Therapeutics Corp.

Pasithea is a clinical-stage biotechnology company focused on the discovery, research and development of innovative treatments for central nervous system (CNS) disorders, RASopathies and MAPK pathway driven tumors. 

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the use of proceeds from the offering, the timing of receipt of NF1 clinical data, the Company’s ongoing Phase 1 clinical trial and the safety, tolerability, pharmacokinetic (PK), pharmacodynamics (PD) and preliminary efficacy of PAS-004, as well as all other statements, other than statements of historical fact, regarding the Company’s current views and assumptions with respect to future events regarding its business, as well as other statements with respect to the Company’s plans, assumptions, expectations, beliefs and objectives, the success of the Company’s current and future business strategies, product development, preclinical studies, clinical studies, clinical and regulatory timelines, market opportunity, competitive position, business strategies, potential growth opportunities and other statements that are predictive in nature. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to the Company on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including risks that future clinical trial results may not match results observed to date, may be negative or ambiguous, or may not reach the level of statistical significance required for regulatory approval, as well as other factors set forth in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and other filings made with the U.S. Securities and Exchange Commission (SEC). Thus, actual results could be materially different. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.

Pasithea Therapeutics Contact

Patrick Gaynes
Corporate Communications
pgaynes@pasithea.com

Source: Pasithea

FAQ

How much did Pasithea Therapeutics (KTTA) raise in their May 2025 public offering?

Pasithea Therapeutics raised total gross proceeds of $6.3 million, consisting of $5.0 million from the initial offering and $1.3 million from warrant exercises.

What is the exercise price of KTTA's Series C and D warrants from the May 2025 offering?

Both Series C and Series D warrants have an exercise price of $1.40 per share.

What will Pasithea Therapeutics use the proceeds from their 2025 offering for?

The proceeds will be used for general corporate purposes, including research, clinical trials, technology development, potential acquisitions, and working capital.

How long are the terms for KTTA's Series C and D warrants from the May 2025 offering?

Series C warrants expire in 5 years, while Series D warrants expire in 18 months from issuance.