Investor Group Urges Stockholders of Pasithea Therapeutics Corp. to Call Special Meeting
Camac Partners, LLC, affiliates of Concord Investment Partners Ltd., and Leonite Capital LLC (collectively with their affiliates, the "Investor Group" or "we"), who together are one of the largest stockholders of Pasithea Therapeutics Corp. (Nasdaq: KTTA) ("Pasithea" or the "Company"), today issued the following open letter to their fellow stockholders:
August 5, 2022
Dear Pasithea Stockholders,
We are soliciting your support to call a Special Meeting of Stockholders to remove the incumbent Board of Directors (the "Board"), a board that has overseen a massive destruction in the value of your investment. Our reason is simple: we have lost all confidence in the directors' ability to be effective and prudent stewards of our capital.
The incumbent directors have asked you to support them despite doing their best to disenfranchise stockholders through dilutive, non-arm's length acquisitions and insider share issuances that have only served to benefit themselves - at the direct expense of all other stockholders. They oversaw a share price decline of more than 80% and then - once our group emerged to advocate for stockholder interests - they proceeded to disenfranchise all stockholders by issuing new shares that could represent nearly 20% of the Company to the Board's chairman and his business associate in a highly speculative transaction.1 To make matters worse, the transaction was done at a 47.5% discount to net cash per share, effectively giving away your cash to the Company's insiders.2
Consider the following additional facts:
We urge you to ask yourselves:
Is this the type of behavior that you would expect to see from a steward of your capital?
Is this a Board of Directors that is likely to change the way in which it treats the Company's stockholders?
Given the way that the Board has behaved historically, is this a team that is likely to put your interests and your capital on an equal playing field with its own?
We believe that the answers to these questions are self-evident. This is not how a board of directors should treat its stockholders.
SUPPORT US IN IMPROVING PASITHEA FOR THE BENEFIT OF ALL STOCKHOLDERS.
RETURN THE WHITE SPECIAL MEETING REQUEST CARD TODAY.