Published on 14 Oct 2022 on Benzinga via Yahoo Finance
Pasithea' Largest Investor Group Says AlloMek Therapeutics Deal Ill-timed, Highly Dilutive
Investor group comprising Camac Partners LLC, Concord Investment Partners Ltd, and Leonite Capital LLC condemned Pasithea Therapeutics Corp's (NASDAQ: 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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