Why Pasithea Therapeutics Stock Is Up Today

Pasithea Therapeutics Corp. KTTA shares are up Monday after Lucy Scientific Discovery LSDI proposed to acquire the company.

What To Know: Lucy proposed to pay $0.60 in cash, and $0.25 cents in Lucy stock for every share of Pasithea common stock.

Lucy suggests that, since Pasithea's most recent quarterly report indicates approximately $30,000,000 cash on hand, and given the significant market value discount to its net cash, its offer will 'create immediate value from the cash portion with additional upside participation through Lucy's stock as it executes its business plan.'

The company plans to explore strategic alternatives for the divestiture of Pasithea's clinical development program in order to preserve cash for shareholders.

If Pasithea's Board of Directors does not endorse the proposal, Lucy may also present it directly to the Pasithea shareholders.

Related Link: Why National CineMedia Stock Popped Today

KTTA Price Action: Shares of KTTA were up 23.9% at $0.50 at the time of publication, according to Benzinga Pro.

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