Lucy Scientific Discovery Inc. (NasdaqCM:LSDI) made a proposal to acquire Pasithea Therapeutics Corp. (NasdaqCM:KTTA) for $22.2 million on June 5, 2023. 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. Having received no response to 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.