Pasithea (NASDAQ: KTTA) gets Nasdaq reprieve before possible delisting
Rhea-AI Filing Summary
Pasithea Therapeutics Corp. (KTTA) reports that Nasdaq has granted an additional 180-day period, until February 16, 2027, to regain compliance with Nasdaq’s $1.00 minimum bid price requirement for continued listing. The initial 180-day grace period had been set to expire on August 19, 2026. The company states it will continue monitoring its share price and may consider actions such as a reverse stock split to regain compliance. If compliance is not achieved within the extended period, Nasdaq may initiate delisting proceedings, which Pasithea would have the right to appeal.
Positive
- None.
Negative
- Nasdaq has warned KTTA about non-compliance with the $1.00 minimum bid price rule, and failure to regain compliance by February 16, 2027 could result in delisting of the company’s common stock.
8-K Event Classification
Item 3.01 — Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
1 item
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice, failed to satisfy a continued-listing rule or standard, or transferred its listing.
Key Figures
Minimum Bid Price Requirement: $1.00 per share
Initial grace period end date: August 19, 2026
Extended compliance deadline: February 16, 2027
+2 more
5 metrics
Minimum Bid Price Requirement
$1.00 per share
Required minimum closing bid price for Nasdaq listing under Listing Rule 5550(a)(2)
Initial grace period end date
August 19, 2026
End of the first 180-day period to regain compliance with the Minimum Bid Price Requirement
Extended compliance deadline
February 16, 2027
New deadline after Nasdaq granted an additional 180-day extension
Extension length
180 days
Length of the additional period granted by Nasdaq to regain bid price compliance
Consecutive days below $1.00
30 business days
Period of sub-$1.00 closing bid prices that triggered the deficiency notice
Key Terms
Minimum Bid Price Requirement, Nasdaq Listing Rule 5550(a)(2), Nasdaq Listing Rule 5810(c)(3)(A), reverse stock split, +1 more
5 terms
Minimum Bid Price Requirement regulatory
"to regain compliance with the Minimum Bid Price Requirement"
A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.
Nasdaq Listing Rule 5550(a)(2) regulatory
"as set forth in Nasdaq Listing Rule 5550(a)(2)"
Nasdaq Listing Rule 5810(c)(3)(A) regulatory
"In accordance with Nasdaq Listing Rule 5810(c)(3)(A)"
reverse stock split financial
"including but not limited to, implementing a reverse stock split"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
delisting regulatory
"the Company’s Common Stock will be subject to delisting"
Delisting occurs when a company's stock is removed from a stock exchange and is no longer available for trading there. This can happen voluntarily or because the company no longer meets the exchange's requirements. For investors, delisting means they can no longer buy or sell shares of that company on the exchange, which may make it more difficult to sell their investments or affect the stock's value.
FAQ
What did Pasithea Therapeutics Corp. (KTTA) announce regarding its Nasdaq listing status?
Pasithea Therapeutics Corp. announced it received a 180-day extension from Nasdaq, until February 16, 2027, to regain compliance with the $1.00 minimum bid price requirement for continued listing of its common stock.
Why is KTTA out of compliance with Nasdaq listing rules?
KTTA is out of compliance because the closing bid price of its common stock was below $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2) regarding the Minimum Bid Price Requirement.
What is the new deadline for KTTA to regain compliance with Nasdaq’s minimum bid price?
The new deadline is February 16, 2027. Nasdaq granted KTTA an additional 180-day extension beyond the original grace period that was scheduled to expire on August 19, 2026.
What actions might KTTA take to regain Nasdaq compliance?
KTTA states it will monitor its share price and may consider available options, including a reverse stock split of its outstanding securities, to attempt to lift its share price and regain compliance with the Minimum Bid Price Requirement.
What happens if KTTA does not regain compliance by February 16, 2027?
If KTTA does not regain compliance by February 16, 2027, Nasdaq may notify the company that its common stock is subject to delisting. KTTA would then be entitled to appeal that determination to a Nasdaq hearings panel.
When did KTTA first receive notice of its Nasdaq bid price deficiency?
KTTA first received notice on February 20, 2026, when Nasdaq’s Listing Qualifications Department informed the company that its common stock had failed to meet the $1.00 minimum bid price requirement for the prior 30 consecutive business days.
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