Lucy Scientific Discovery (LSDI) Announces Proposal to Acquire Pasithea Therapeutics Corp. (KTTA)

Lucy Scientific Discovery Inc. (“Lucy” or “the Company”) (NASDAQ: LSDI), a licensed producer of compounds for medicinal products, today announced that it sent a 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, Lucy proposes 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.

Pasithea’s most recent quarterly report indicates approximately $30,000,000 cash on hand. Given the significant market value discount to its net cash, Lucy believes its attractive offer will create immediate value from the cash portion with additional upside participation through Lucy’s stock as it executes its business plan. In order to preserve cash for shareholders, Lucy intends to explore strategic alternatives for the divestiture of Pasithea's clinical development program.

While Pasithea’s 30-day average daily dollar trading volume is only $16,000, Lucy is an actively traded NASDAQ company with an average daily dollar trading volume of more than $1.8 million. This represents more than 100 times the dollar volume of Pasithea’s trading and could substantially improve liquidity for its shareholders.

In the event that the proposal is not endorsed by Pasithea's Board of Directors, Lucy is prepared to present it directly to the Pasithea shareholders.

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