aibioPasithea Therapeutics gets Nasdaq notice for trading below $1.00 bid price
Tickers KTTA
The company has until December 22, 2025 to regain compliance. It may qualify for a second 180-day period and is considering its options.
Key facts
- Company
- Pasithea Therapeutics Corp. (NASDAQ: KTTA)
- News type
- Listings
- Primary source
- Pasithea Therapeutics Corp. 8-K (2025-06-27)
The notice
Pasithea Therapeutics Corp. (Nasdaq: KTTA) said it received a written notice from Nasdaq on June 23, 2025. The notice says the company does not meet the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market, under Nasdaq Listing Rule 5550(a)(2). The company's warrants also trade on the Nasdaq Capital Market, under the symbol KTTAW.
Nasdaq based the notice on the closing bid price of the common stock over 30 consecutive business days before the notice was delivered. Over that period the stock did not stay at or above $1.00, so the company no longer meets the requirement. The notice does not result in immediate delisting. The company said in its 8-K, filed June 27, 2025, that receiving the notice does not affect its business, operations or reporting obligations with the SEC.
The company says it will monitor its bid price and is considering its options.
The cure period and what it could require
The notice gives Pasithea 180 calendar days, or until December 22, 2025, to regain compliance. The stock must close at or above $1.00 for at least ten consecutive business days during that period, and then Nasdaq staff will confirm compliance in writing and close the matter.
If the company does not regain compliance by then, it may be eligible for a second 180-day period. To qualify, it must meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards except the bid price. It also must give Nasdaq written notice that it intends to cure the deficiency during that second period, by effecting a reverse stock split if necessary. The 8-K does not say whether the company will seek a reverse split or whether it has already decided to.
If Nasdaq staff conclude the deficiency cannot be cured, or if the company is not otherwise eligible, the company will receive a delisting notice. It could then appeal to a hearings panel.
The 8-K is signed by Chief Executive Officer Tiago Reis Marques.
The drug and the competition
Pasithea's lead product candidate is PAS-004, a small-molecule allosteric inhibitor of MEK 1 and 2 that the company is developing for RASopathies, including neurofibromatosis type 1, or NF1, and for MAPK pathway-driven tumors. The annual report says the company is advancing three therapeutic candidates in total. The company says PAS-004 is a macrocyclic molecule, a design it believes improves potency, metabolic stability and oral bioavailability.
The company faces approved competition. The annual report names selumitinib, sold as Koselugo, for pediatric patients with NF1-associated plexiform neurofibromas, and mirdametinib, sold as Gomekli, for adult and pediatric patients with those tumors. The company says current MEK inhibitors have known toxicities, and it argues that PAS-004's long half-life, low peak-to-trough ratio and steady drug levels could give sustained pathway suppression. It says those approved drugs have short half-lives and require twice-daily dosing.
The annual report is clear that the claims are unproven. It says the ultimate safety and efficacy profile of PAS-004 "will require clinical testing to be completed." The drug received an investigational new drug clearance from the FDA in December 2023, and its first-in-human Phase 1 trial is an open-label, multicenter study in patients with MAPK pathway-driven advanced tumors. The company announced preliminary efficacy data from the first two cohorts on September 26, 2024. It says it has completed dosing of 17 patients through cohort 4 and was dosing four patients in cohort 5, with no dose-limiting toxicities observed in any cohort assessed so far. The annual report calls those efficacy data preliminary.
What the listing problem means for the trial timeline
The annual report and the 8-K together show a company with a single lead asset in early clinical testing, and a stock trading below the minimum bid price that Nasdaq requires. The notice gives Pasithea until December 22, 2025. To avoid a delisting notice, the company must either close at or above $1.00 for ten straight business days or qualify for the second period, and the filings give no timing for the trial milestones that might lift the stock.