Pasithea Therapeutics Corp. (KTTA), a biotechnology company, has gained an increase of 3.29% in the aftermarket trading session. As a result, KTTA stock is trading at $4.39 at the time of the writing. On Monday, KTTA increased 5.29% during regular trading hours and closed the day at $4.25. The consistent increase is attributable to the announcement of the closing of the private placement.
Why KTTA Rising?
On Monday, KTTA announced the closing of its previously announced private placement of common stock and warrants. The common stocks and warrants were priced at a premium to the market in pursuance of Nasdaq rules. The company sold an aggregate of 8.68 million shares of common stock and warrants for the purchase of 8.68 million shares of common stock. The purchase price was set at $3.50 per share and an accompanying warrant for the gross proceeds of $30.4 million.
Q3 2021 Operational Results
On 18th November, KTTA released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company suffered a loss of $1.27 million during the quarter against $13,970 for the same period of 2020. The net loss suffered by the company during the three months was $1.52 million against $13,970 for the same period of 2020. The net loss per basic and diluted share for the period was $0.17 against 0 for the same period of 2020.
Executive Commentary
Stanley M. Gloss, Chief Financial Officer of KTTA, while commenting on the results said that the COVID-19 pandemic imparted its influence on the business of the company, as evident from its comparison between results of the third quarter of 2021 and 2020. He, however, was hopeful that the company is now in a good position to build upon its already attained momentum in the coming months.
Future Outlook for KTTA
During last month, KTTA stock has increased by more than 50%, primarily due to the innovative business and medicinal strategies being adopted by the company. Analysts believe that the company is in a good shape to attract more and more potential investors in the coming months.
