Field Trip Health To Divide Into Two Separate Firms
Field Trip Health (TSX: FTRP) is set to be split into two separate firms. The company last night indicated that its board has approved an arrangement whereby the firms current operations will split into two separate public companies, one of which is focused on health clinics while the other is focused on next generation drug discovery.
The split will see the current public company that it Field Trip Health continue as Reunion Neuroscience, which is to focus on drug discovery within the psychedelic field. The firm will continue to focus on the development of novel molecules, with the first such molecule, FT-104, set to enter phase 1 clinical trial before the end of H1 2022.
Reunion is set to be lead by Joseph del Moral, whom is currently the CEO of Field Trip, while the company is to retain Nathan Bryson as the chief scientific officer. The company is expected to have a cash position of $43.0 million, along with $5.0 million in shares of the spun out company, and is to trade on both the TSX and the Nasdaq.
The spin out company meanwhile is to be branded as Field Trip Health & Wellness, and is expected to trade on the TSX Venture. Current shareholders of Field Trip are to receive 0.86 shares in the spun out company for each share of Field Trip currently held.
The spin out will be ran by Ronan Levy, whom is currently executive chairman of the company, while COO Mujeeb Jafferi will serve as President. The firm is expected to operate a total of twelve health centers for psychedelic psychotherapy treatment programs, while providing clinical trial services for psychedelic therapies.
Field Trip Health & Wellness is to be financed via a number of transactions. First, Reunion is set to invest $5.0 million directly at a price of $0.50 per share. Oasis Management will also invest in the company to take a 19.99% stake in the firm, at a price of $0.50 per share. Finally, a $10.0 million subscription receipt financing is set to occur, at $0.50 per subscription receipt, that upon closing will automatically transition to one common share of the company. Collectively, the firm is set to have raised $20.0 million in gross proceeds ahead of the go public transaction for the spin out.
The transaction is currently expected to close in July 2022 and remains subject to shareholder approval.
Field Trip Health last traded at $1.55 on the TSX.
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