KTTA - Pasithea Therapeutics secures $30.4M capital in private placement; shares down 30%

Pasithea Therapeutics (NASDAQ:KTTA) has entered into securities purchase agreements with certain institutional investors to purchase 8.68M shares of its common stock and warrants to purchase equal number of shares, at $3.50/share and warrant in a private placement priced at a premium to the market under Nasdaq rules. Shares down 29.5% premarket at $3.95. Expected gross proceeds are ~$30.4M. The five-year warrants will have an exercise price of $3.50/share. Net proceeds will be used to fund pre-clinical R&D work for future product candidates, invest in developing U.S. and U.K. clinic businesses, for working capital and general corporate purposes. Closing date is November 29, 2021. Yesterday, KTTA stock rose more than double after its esketamine nasal spray was added to U.K. offerings.

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Pasithea Therapeutics secures $30.4M capital in private placement; shares down 30%