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Pasithea Stock Plunges After Equity Raise of $30M

Benzinga Real-time News ·  Nov 24, 2021 13:00

Pasithea Therapeutics Corp (NASDAQ: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.
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