Field Trip Health Ltd. (TSX: FTRP)(TSX: FTRP.WT)(Nasdaq: FTRP) said it has received unanimous board approval to reorganize and split the firm into two independent companies.
Last week, the psychedelic-therapy company said it wants to turn its Field Trip Discovery and Field Trip Health divisions into two independent firms where one will develop new psychedelic therapies and the other firm will offer personalized medical care.
The company says the split will reduce capital requirements, maximize the impact of its existing 12 locations, support more people through the launch of its ketamine-assisted psychotherapy program Field Trip at Home and better leverage its digital tools to reach a larger audience.
Field Trip Discovery will be renamed Reunion Neuroscience Inc. and Field Trip Health will be renamed Field Trip Health and Wellness Ltd.
Under the transaction, Field Trip H&W will complete a series of separate private placements led by financing company Oasis Management to raise aggregate gross proceeds of approximately $20 million, including a $5 million investment from Field Trip directly.
Each share of Field Trip will be exchanged for one common share of Reunion and approximately 0.86 common shares of Field Trip H&W.
Reunion will remain listed on the Nasdaq Stock Market and Toronto Stock Exchange, and Field Trip H&W –subject to exchange approval– will list on the TSX Venture Exchange.
After the transaction is finished, the companies will have separate management, will be able to establish distinct capital structures and allocation and provide differentiated investment characteristics.
Field Trip stock went up by 2.17 per cent on Tuesday to C$1.41 on the Toronto Securities Exchange and was up by 1.85 per cent to US$1.10 on the Nasdaq Exchange.
The health division will be focused on operating the 12 Field Trip Health Centers, providing training for clinicians in psychedelic-assisted psychotherapies as well as continuing with psilocybin research at its Jamaican facility.
Field Trip H&W will be led by Ronan Levy as CEO and Mujeed Jafferi as president.
“Upon completion of the Transaction, our focus will shift to scaling access so that anyone seeking treatment can safely, consciously and responsibly access psychedelic therapies,” Levy said.
Reunion Neuroscience Inc. will focus on the research and development of its novel molecule FT-104 and other molecules under development.
Reunion CEO Joseph del Moral said that over the course of the last three years, the company has built two leading companies under a single roof. He said this strategy has enabled the company to develop practical knowledge and operational expertise in psychedelic therapies, as well as one of the most innovative drug development programs in the sector.
“The results of our strategic review confirmed that both parts of Field Trip are ready to be independent, standalone companies, in a separation that we believe maximizes the long-term value of each business,” del Moral said.