Pasithea' Largest Investor Group Says AlloMek Therapeutics Deal Ill-timed, Highly Dilutive - Pasithea Therapeutics (NASDAQ:KTTA)

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  • Investor group comprising Camac Partners LLCConcord Investment Partners Ltd, and Leonite Capital LLC condemned Pasithea Therapeutics Corp’s KTTA recently announced the acquisition of AlloMek Therapeutics LLC.
  • The investors, collectively the largest stockholder of the company, said, “We are disgusted that less than two weeks after acknowledging stockholders’ request to call a Special Meeting intended to decide the fate of the current Board, Pasithea’s incumbent directors decided to proceed with a second highly dilutive acquisition within the last six months.” 
  • “In our view, the company’s stockholders should consider this a clear sign that investor feedback is being dismissed and urgent change is needed in the boardroom,” they added.
  • Related: EXCLUSIVE: Pasithea Bolsters CNS-Focused Pipeline With AlloMek Therapeutics Acquisition.
  • The investors said that at the company’s last annual meeting, fewer than 6 million shares were voted “For” each of the incumbent directors. While the investors received support suggesting clear evidence of investor dissatisfaction with the Board.
  • In June, Pasithea acquired Alpha-5 integrin LLC, a privately-held preclinical-stage company developing a monoclonal antibody for amyotrophic lateral sclerosis and other neuroinflammatory disorders, for $3.75 million.
  • Price Action: KTTA shares traded 0.79% lower at $1.24 on the last check Friday.

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Image and article originally from www.benzinga.com. Read the original article here.