Health Canada-licensed psychedelics producer Lucy Scientific Discovery LSDI announced it has sent a proposal to biotech business Pasithea Therapeutics Corp. KTTA to acquire each share of its common stock.
Pasithea’s business development plan within treatments for mental health conditions includes ketamine-assisted therapy.
Lucy is offering to pay $0.60 in cash plus $0.25 in Lucy stock for every Pasithea common stock share. Taking Pasithea’s closing share price at $0.35 on June 1, the proposal of $0.85 per share “equates to 142% premium to Pasithea’s share price,” and, “in fact, the cash component alone represents a 71% premium,” stated Lucy.
Actually, Pasithea’s stock price took a noticeable jump by the start of June, with Friday 2 closing at $.40 and Monday 5 opening at $0.54, its highest peak since February.
Pasithea began trading on NASDAQ with a $24 million IPO in September 2021 at $3.15 each share, its highest ($4.01) achieved shortly thereafter. Following this, a non-stop price descending trend took on.
Lucy is actively working on different business opportunities within the psychedelics space. Toward preserving cash for shareholders, Lucy said it intends to explore strategic options for the divestiture of Pasithea’s clinical development program.
Should the proposal not be endorsed by Pasithea’s board of directors, Lucy intends to present it directly to the company’s shareholders.
Photo: Benzinga edit with photo by Tumisu and sergeitokmakov on Pixabay.