Field Trip Shares Fiscal Q4 And Full Year 2022 Results & Update On Court-Approved Corporate Reorganization

Psychedelic therapies developer and provider Field Trip Health Ltd. FTRP FTRP reported fiscal fourth quarter and full year 2022 results for the period ended March 31, 2022 and completed a strategic review resulting in the intention to separate the Field Trip Discovery and Field Trip Health divisions into two independent public companies.

The company’s Discovery division leads the development of next-gen psychedelic molecules and conducts research on plant-based psychedelics, and the Health division runs centers for psychedelic therapies across North America and Europe.

During the fiscal fourth quarter, Field Trip continued advancing on its drug discovery work focused on the R&A of its first drug candidate, FT-104, as well as other molecules such as the FT-200 series. Specifically, FT-104 is based on classical serotonin 2A psychedelics, like psilocybin, reported to successfully help a variety of mood disorders including depression, anxiety and substance abuse. 

While FT-104 is a proprietary clinical-stage prodrug designed to produce a short duration experience, FT-200 constitutes a family of molecules with potentially reduced cardiovascular risk profiles.

On the other hand, the Field Trip Health clinics business has increased customer reach and announced new strategic partnerships for psychedelic-assisted treatment options, recently announcing the opening of its Vancouver and Washington locations.

Financial Highlights (in Canadian dollars): 

• For the fiscal 4Q ended March 31, 2022, a total C$1,724,102 belonged to patient services revenues from Field Trip’s twelve clinics, a 228% increase over the same period of 2021.

• Fiscal year ended March 31, 2022 showed total revenue of C$4,860,129, a 406% increase over prior fiscal year (primarily due to seven additional operating clinics compared to 2021).

• Fiscal fourth quarter’s net loss totaled C$14,170,285, primarily due to total operating costs of C$14,323,644, reflecting the company’s focus on growing the clinics and continued investment in its drug development pipeline. 

• Fiscal year ended March 31, 2022’s net loss reflected C$54,691,130, considering total operating costs of C$57,902,159 and C$2,075,004 in interest expense and foreign exchange losses. 

• Total operating expenses in the fiscal 4Q involved C$14,323,644, destined to general & administration expenses of C$7,432,602, patient services expenses of C$2,691,335, research and development (R&D) expenses of C$2,333,724, depreciation and amortization of C$1,124,854, sales and marketing expenses of C$434,781, and occupancy costs of C$306,798. 

• Total operating costs for fiscal year 2022 reached C$57,902,159.

• Balance Sheet: As of March 31, 2022, Field Trip had unrestricted cash and cash equivalents and restricted cash of total C$64,496,653.

Field Trip received final court approval regarding the spin-off of its clinics business to new Field Trip Health & Wellness Ltd. (Field Trip H&W).

The closing is expected to take place in August 2022. Following the arrangement, the company 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.

Each Field Trip’s share will be exchanged for one of its common shares (to be renamed "Reunion Neuroscience Inc." after the arrangement) and approximately 0.86 of a common share of Field Trip H&W.

The company has also announced the closing of a brokered private placement of subscription receipts of Field Trip H&W led by Bloom Burton Securities Inc., on behalf of itself and a syndicate of agents including Stifel GMP, at an issue price of C$0.50 per subscription receipt for aggregate gross proceeds of C$2,100,000. 

The net proceeds of this offering will be used by Field Trip H&W for clinic operating expenses, working capital, arrangement expenses and general corporate purposes. Upon the satisfaction of certain escrow release conditions, each subscription receipt shall automatically be exchanged into one Field Trip H&W common share.

Photo Courtesy of Sean Pollock on Unsplash.