Pasithea Therapeutics Corp (NASDAQ:KTTA) shares are trading higher after the company confirmed that an independent special committee of its Board of Directors thoroughly reviewed and rejected an unsolicited, non-binding acquisition proposal from Lucy Scientific Discovery Inc (NASDAQ:LSDI).

Under the terms of the offer made on June 5, Lucy proposed to pay $0.60 in cash and 0.25 cents in Lucy stock for every share of Pasithea common stock.

Since Pasithea's stock closed at $0.35 per share on June 1, 2023, the Proposal of $0.85 per share equates to a 142% premium to Pasithea's share price. The cash component alone represents a 71% premium.

The Special Committee determined that the Lucy proposal does not reflect Pasithea's strategic value and prospects for continued growth and is not in the company's or its stockholders' best interests.

Concurrently, Pasithea's Board authorized the repurchase, through a $4.0 million tender offer, of up to approximately 5.7 million shares of the company's outstanding common stock, at an anticipated cash purchase price of $0.70 per share.

Price Action: KTTA shares are up 23.9% at $0.58 on the last check Thursday.