Pasithea Therapeutics Corp. has six more months to fix its Nasdaq listing, and the stakes are higher because this is the second time around. Nasdaq granted the Miami Beach, Florida company (ticker: KTTA; warrants: KTTAW) a 180-day extension through February 16, 2027, to bring its common stock back above the $1.00 minimum bid price. The company's 8-K, filed August 21, 2026, acknowledged that there is no assurance compliance will be achieved.
The deficiency first surfaced February 20, 2026, when Nasdaq's Listing Qualifications Department notified Pasithea that its common stock had closed below $1.00 per share for 30 consecutive business days, a violation of Nasdaq Listing Rule 5550(a)(2). That rule sets the floor for continued listing on the Nasdaq Capital Market. A first 180-day cure window expired August 19, 2026. One day later, Nasdaq issued a second notice granting another 180 days.
The read-through on options
The filing states that Pasithea will monitor its closing bid price and may, if appropriate, consider implementing available options, including a reverse stock split, to regain compliance. The conditional framing matters. A reverse split raises the per-share price mechanically but reduces share count, concentrating existing holders and signaling distress. For an emerging growth company, as Pasithea is designated under SEC rules, those optics compound an already-challenged equity story.
The counterargument is real. Pasithea now holds a runway to February 16, 2027. If the stock recovers on its own, management avoids the structural costs of a split entirely. Nasdaq's rules also preserve the right to appeal any eventual delisting notice to a hearings panel, which can extend the process further. The listing survives today.
On balance, the risk is that runway without recovery is deferred risk, not resolved risk. A second extension means the first cure period produced no result. The line to watch is whether the company moves toward a formal reverse split decision before February 16, 2027. Without that, and without a stock recovery, Nasdaq's next communication will be a delisting notice.