Shares of Pasithea Therapeutics Corp. (KTTA) rose up to 38% after the company announced it has priced a $60 million public offering of 80 million shares of common stock at $0.75 per share.
The financing, led by healthcare-focused investors including Vivo Capital, Janus Henderson Investors, Coastlands Capital, Columbia Threadneedle Investments, Adage Capital Partners, and Squadron Capital Management, is expected to close on or about December 1, 2025, subject to customary conditions. H.C. Wainwright & Co. acted as exclusive placement agent.
Pasithea stated that the net proceeds will extend its cash runway through at least the first half of 2028, supporting ongoing research, pre-clinical studies, clinical trials, technology development, licensing, acquisitions and working capital.
Pasithea's lead candidate, PAS-004, is a next-generation macrocyclic oral MEK inhibitor intended for RASopathies, MAPK pathway-driven tumors, and other diseases, and is currently being evaluated in a Phase 1 trial in advanced cancer patients as well as a Phase 1/1b trial in adult patients with neurofibromatosis type 1 (NF1)- associated plexiform neurofibromas (NF1-PN).
Neurofibromatosis type 1 (NF1) is a neurocutaneous disorder affecting ˜1 in 3,000 births, often leading to tumor growth along nerves. While most tumors are benign, they can cause severe complications, and current treatment options remain limited. PAS-004 aims to provide a novel therapeutic option beyond AstraZeneca's Koselugo (selumetinib), the only FDA-approved MEK inhibitor for paediatric NF1 PN.
Recently Pasithea was awarded $1 million by the ALS Association to study PAS-004 in amyotrophic lateral sclerosis (ALS), expanding its pipeline into neurodegenerative disorders.
KTTA closed Friday's trading session at $1.46, up 36.44%, but currently down 10.27% in overnight. Over the past 12 months the stock has traded between $0.28 to $3.85.
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