As has become a trend within the psychedelics space, Field Trip Health (CSE: FTRP) this morning announced an increase to its bought deal private placement that was originally announced last night. The upsizing was expected, given that the equity had remained halted despite the news being released last night. The financing as a whole has now increased from $15.0 million to $17.4 million.
The financing, which is being lead by Stifel whom is lead underwriter and sole bookrunner, will now see 3.9 million units of the company sold at $4.50 per unit, for gross proceeds of $17.4 million. Units are to consist of one common share and one half warrant of the company, with each full warrant having an exercise price of $5.60 per share for a period of 18 months following the closing of the transaction.
An acceleration clause is also present on the warrant, enabling the company to accelerate the expiry of the warrant should common shares of the company exceed a volume weighted average trading price of $9.00 for a period of ten consecutive trading days.
An over-allotment option has also been granted under the financing, as has become customary of late, with the option enabling the underwriters to expand the financing to a total figure of $20.0 million should it be exercised in full. The option exists for a period of 30 days following the closing of the offering.
Net proceeds from the financing are said to be for working capital and general corporate purposes.
Field Trip Health last traded at $5.00 on the CSE.
Information for this analysis was found via Sedar and Field Trip Health. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
