Pasithea Therapeutics Shares Surge 117% on Equity Offering and ALS Grant

Pasithea Therapeutics experienced a remarkable surge in its stock price, rising by 117% on a single trading day, marking its best performance in four years. This impressive jump came after the company announced a substantial equity offering and received a significant grant from the ALS Association, creating renewed optimism about its clinical programs. The stock reached a nearly seven-month high, closing at approximately $0.80 per share and adding 11% in after-hours trading.

Major Equity Offering Announced

The company revealed plans for an equity offering that includes up to 75 million shares of common stock priced at an estimated $0.80 per share. Additionally, it is offering up to 75 million pre-funded warrants at $0.799 each. Each warrant can be converted into one share at a nominal cost of $0.001, providing immediate access for investors. The offering will be conducted on a best-efforts basis until December 31, 2023. Notably, Pasithea will not pursue an exchange listing for the pre-funded warrants.

ALS Grant Fuels Enthusiasm

The excitement surrounding Pasithea’s stock was further enhanced by the announcement of a $1 million grant from the ALS Association, aimed at supporting the first clinical trial of PAS-004 in individuals diagnosed with ALS. This funding will be instrumental in evaluating the drug’s safety, efficacy, and tolerability in this challenging neurological disorder. Lawrence Steinman, Chairman of Pasithea, emphasized that this award allows them to initiate the inaugural ALS trial for PAS-004, which targets a crucial molecule implicated in motor neuron disease. Promising results from preclinical studies in the SOD mouse model have already demonstrated the drug’s potential.

PAS-004’s development is also progressing in other areas. The ongoing Phase 1 study for MAPK-driven advanced solid tumors continues to show positive results, with no significant toxicities reported in Cohort 7, leading to a recommendation to proceed to Cohort 8. Interim data highlights the drug’s effectiveness in inhibiting its biological target, with early signs of a tumor response noted in patients with BRAF mutations.

The company has also activated a new clinical research site at the University of Alabama at Birmingham for its neurofibromatosis Type 1 program, expanding its clinical footprint.

Retail traders have reacted enthusiastically to Pasithea’s developments. On the social media platform Stocktwits, sentiment around the company reached an all-time high, with a staggering 1,385% increase in message volume over a 24-hour period. One user shared their experience of trading at $1.20 and expressed hope for further gains, while another highlighted the volatility of the stock market, stating, “Longs won here already in my opinion.”

Despite this recent surge, it is worth noting that Pasithea’s stock has faced challenges, having declined by 66% in 2025 thus far. The combination of the equity offering, positive clinical results, and external funding signals a potential turning point for the company as it continues to navigate the complexities of drug development and market dynamics.