VANCOUVER, British Columbia, June 29, 2023 (GLOBE NEWSWIRE) — Lucy Scientific Discovery Inc. (“Lucy” or “the Company”) (NASDAQ: LSDI), a licensed producer of compounds for medicinal products, today announced that it had reaffirmed its proposal to Pasithea Therapeutics Corp. (“Pasithea”) (NASDAQ: KTTA), a biotechnology firm focused on innovative medical solutions, to acquire each share of its common stock.
Under the terms of the offer made on June 5th, Lucy proposed to pay $0.60 in cash, and $0.25 cents in Lucy stock (NASDAQ: LSDI) for every share of Pasithea common stock. Given that Pasithea’s stock closed at $0.35 per share on June 1, 2023, the Proposal of $0.85 per share equates to 142% premium to Pasithea’s share price. In fact, the cash component alone represents a 71% premium.
Lucy noted in its letter today to Pasithea that following the announcement of its offer, Pasithea’s stock experienced a significant increase in both price and volume. In fact, on the first trading day following the announcement, the stock hit a nearly 4-month high of just over $0.64, up 86% since the beginning of the month, and volume increased to 1,320,800 shares that day, a 9,334% increase compared to the prior 30-day average of 14,000 shares, suggesting that Pasithea’s shareholders are very interested in the Lucy proposal.
Having received no response to its proposal, Lucy indicated that if it received a genuine commitment to engage in good faith negotiations by July 10, 2023 it would be willing to explore improving its already generous offer. Lucy further indicated that, in the absence of a constructive response, it was prepared to present its offer directly to Pasithea’s shareholders.
About Lucy Scientific Discovery Inc.
Lucy Scientific Discovery Inc. (NASDAQ: LSDI) is a licensed producer of compounds for medicinal products. Holding a Controlled Drugs and Substances Dealer’s License granted by Health Canada’s Office of Controlled Substances, Lucy Scientific Discovery Inc. and its wholly-owned subsidiary, LSDI Manufacturing Inc., operate under Part J of the Food and Drug Regulations promulgated under the Food and Drugs Act (Canada). This specialized license authorizes LSDI to develop, sell, deliver, and manufacture pharmaceutical-grade active pharmaceutical ingredients (APIs) used in controlled substances and their raw material precursors. Lucy’s focus is on pioneering innovative therapies for patients in need, and through its lead candidate SANA-013, dedicated to advancing the understanding and applications of psychedelic medicine, improving mental health outcomes, and enhancing well-being for individuals worldwide.