Pasithea Therapeutics Corp. priced a public offering of 80 million shares of common stock (or pre‑funded warrants) at $0.75 per share, generating approximately $60 million in gross proceeds. The financing is expected to extend the company’s cash runway through at least the first half of 2028, providing critical liquidity for its Phase 1 and Phase 1/1b trials of the lead candidate PAS‑004.
Prior to the offering, Pasithea’s financial position was strained: the company reported a net loss of $3.04 million for Q3 2025 and held only $4.1 million in cash and cash equivalents as of September 30 2025. A note of “substantial doubt about continuing as a going concern” in the Q3 filing underscored the urgency of the capital raise.
The proceeds will be used for general corporate purposes, with a focus on advancing research and clinical development, supporting the ongoing Phase 1/1b program for PAS‑004, and positioning the company for potential acquisitions. The infusion of capital removes the immediate liquidity constraint that had limited the pace of development and allowed the company to maintain momentum in its pipeline.
The funding is pivotal for PAS‑004, an oral MEK inhibitor targeting neurofibromatosis type 1‑associated plexiform neurofibromas and advanced solid tumors with MAPK pathway mutations. Recent interim data from Cohort 7 of the Phase 1 trial showed a favorable safety profile, with no treatment‑related adverse events observed during the dose‑limiting toxicity period, bolstering confidence in the drug’s clinical trajectory and potential for partnership or regulatory approval.
CEO Dr. Tiago Reis Marques emphasized the significance of the safety data, stating, “We are highly encouraged by the initial safety data generated in Cohort 7… where zero treatment‑related adverse events have been observed during the DLT period. We believe PAS‑004 is particularly well suited for the treatment of diseases involving the MAPK pathway that require chronic dosing over long periods of time, where sustained long‑term pathway…” The comment highlights the company’s belief that the drug’s safety and dosing profile align with the therapeutic needs of its target indications.
The announcement was well received by investors, reflecting confidence in Pasithea’s liquidity position and the clinical progress of its lead candidate. The capital raise removes a critical headwind and positions the company to pursue its development milestones without immediate additional financing.
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