Pasithea Therapeutics Seeks Stockholder Approval for Reverse Split to Avert Nasdaq Delisting
KTTA sits 51% above its 52-week low of $0.281.
Summary
To regain Nasdaq's $1.00 minimum bid price compliance by the August 19, 2026 deadline, Pasithea Therapeutics is asking stockholders to approve a reverse stock split. The stock closed at $0.455 on July 24, 2026, and delisting would move trading to less liquid over-the-counter markets.
Key Events · Corporate Governance and Compliance · KTTA
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Reverse Split Proposal to Avoid Delisting
Stockholders are being asked to approve a reverse stock split at a ratio between 1:2 and 1:20 to regain compliance with Nasdaq's $1.00 minimum bid price requirement. The stock closed at $0.455 on July 24, 2026, and the compliance deadline is August 19, 2026.
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Nasdaq Delisting Risk
A deficiency notice was received on February 20, 2026, giving the company until August 19, 2026, to regain compliance. If unsuccessful, the stock could be delisted to the OTC market, reducing liquidity and institutional interest.
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Post-Split Share Count and Price Estimates
Depending on the ratio chosen, outstanding shares would drop to between 1.67 million and 16.71 million, with estimated post-split prices ranging from $0.91 to $9.10 based on the July 24 closing price.
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Board Independence Re-evaluation
The board re-evaluated Chairman Lawrence Steinman's independence and now deems him independent after reducing his consulting fees to $1.00 per quarter, effective October 1, 2025.
Analysis · KTTA · Life Sciences
A critical Nasdaq delisting threat looms over Pasithea Therapeutics after it received a minimum bid price deficiency notice in February 2026. With the stock trading at $0.455 as of July 24, 2026—well below the $1.00 requirement—the company is asking stockholders to approve a reverse stock split at a ratio between 1:2 and 1:20. The compliance deadline is August 19, 2026, and failure to regain compliance could force the stock to trade on less liquid over-the-counter markets, severely limiting investor access and institutional interest. In a separate governance move, the board re-evaluated the independence of Chairman Lawrence Steinman, now deeming him independent after reducing his consulting fees to a nominal $1.00 per quarter. While the reverse split could mechanically boost the share price, it does not address underlying business fundamentals and carries risks of further price declines and reduced liquidity.
At the time of this filing, KTTA was trading at $0.42 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $15M. The 52-week trading range was $0.28 to $2.06. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.