Lucy Scientific Archives - Green Market Report

StaffOctober 16, 2023


The Daily Hit is a recap of the top financial news stories for Oct. 16, 2023.

On the Site

Pair of Lawsuits Claim Fraud in Arkansas Marijuana Licensing

Two new lawsuits accuse prominent Arkansas attorneys of committing fraud in order to circumvent a state residency requirement on behalf of an out-of-state client who wanted medical marijuana business licenses. Read more here.

Five More New York Cannabis Retailers Opening

New York’s legal marijuana retail club is about to increase by five, state regulators announced on Monday. Two retailers opened last Friday, while three others are slated to open later this week. Read more here.

Maryland Judge Sides With Hemp, Blocks New Law

A Maryland judge denied a temporary restraining order against hemp producers, saying that the hemp products were legal under the 2018 Farm Bill. The Maryland Hemp Coalition filed the case against the state’s 2023 Cannabis Reform Act. Read more here.

Lucy Scientific Debt Climbs in Fiscal Year Report

Lucy Scientific Discovery Inc. (NASDAQ: LSDI) reported its full-year results for the period ended June 2023, in which the psychedelic start-up piled onto its mounting deficit despite new M&A developments. The company did report some revenue, but losses also piled up. Read more here.

Cannabis is Big Business for Michigan Law Firms

The legalization of cannabis in Michigan created a boon for law firms across the state and has propelled lawyers ahead in their careers. Since the start of legal marijuana sales in 2018, the lawyers have been absolutely critical in standing up for the newly-regulated industry. Read more here.

Vext Science Snaps up Two More Ohio Dispensaries in $9.4M Deal

Vext Science (CSE: VEXT) (OTCQX: VEXTF) announced an agreement Monday to purchase two Ohio-based cannabis dispensaries from Big Perm’s Dispensary Ohio, LLC. The deal, valued at approximately $9.4 million, is slated to close in 2024. Read more here.

In Other News

4Front Ventures Corp.

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) entered into a $10 million senior secured credit facility agreement with ALT Debt II LP, an affiliate of Altmore Capital. The funds will be disbursed in two tranches and are committed to building out the company’s retail operations in Illinois. Read more here.

Maine Cannabis Union

Cannabis workers in Maine have united to form a union with the goal of advocating for their rights and better working conditions. The Maine Cannabis Union said it is committed to improving wages, benefits, and workplace conditions for all employees within the industry. Read more here.

Alabama Medical Cannabis Commission

The Alabama Medical Cannabis Commission adopted new application and licensing rules after months of legal disputes and amid stalled settlement negotiations over the commission’s evaluation process. The rules adopted Thursday by the commission will allow the panel to keep scores it gave to prior applications but give applicants the chance to outline deficiencies. Applicants will have the opportunity to present their proposals to the commission in a public meeting. Read more here.

Debra BorchardtJune 7, 2023


Lucy Scientific Discovery Inc.  (NASDAQ: LSDI) announced on Monday that it wanted to buy the biotech company Pasithea Therapeutics Corp. (NASDAQ: KTTA) in a cash and stock deal. Pasithea confirmed that it had received the unsolicited offer from Lucy Scientific and that the board would review the proposal to see if it was in the best interests of its shareholders.

Lucy proposed to pay $0.60 in cash, and $0.25 cents in Lucy stock for every share of Pasithea common stock. LSDI stock was lately selling at $1.13 per share. Lucy said in its statement, “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.”

Lucy went on to state that Pasithea’s most recent quarterly report indicated that the company had approximately $30 million in cash on hand. The statement said that, “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.”

Lucy went on to say that if the Pasithea board didn’t approve of the acquisition, it would approach the company’s shareholders directly.


Pasithea has a therapeutic pipeline that currently consists of four programs. In the company’s most recent filing it stated, “Our lead product candidate, PAS-004, is a next-generation macrocyclic mitogen-activated protein kinase, or MEK inhibitor, that we believe may address the limitations and liabilities associated with existing drugs with a similar mechanism of action. PAS-004 is designed to be macrocyclic for potential use in the treatment of a range of RASopathies, including neurofibromatosis type 1 (“NF1”) and Noonan syndrome, as well as lamin A/C (“LMNA”) cardiomyopathy and a number of oncology indications. Our remaining three programs, PAS-003, PAS-002 and PAS-001, are in the discovery stage and are based on novel targets that we believe address limitations in the treatment paradigm of the indications we plan to address, which are currently amyotrophic lateral sclerosis (“ALS”), multiple sclerosis (“MS”) and schizophrenia.”

In the first quarter, Pasithea said it discontinued its at-home services in New York, NY as well as its services in the U.K. The company wrote in its earnings release, “In addition, we discontinued our clinical operations in Los Angeles, CA and are actively exploring options for the disposal of related property. Accordingly, as of the date of this Quarterly Report on Form 10-Q, we have discontinued the operations of our Clinics segment.”


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