Field Trip Health Ltd. (CSE: FTRP, FTRP.WT, OTCQX: FTRPF) ("Field Trip"), a leader in the development and delivery of psychedelic therapies, reported its third fiscal quarter results for the three and nine months ended December 31, 2020. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.
Key Highlights and Developments During Fiscal Q3
On October 1, 2020, Field Trip completed its previously announced going public transaction via a reverse takeover and on October 6, 2020 began trading on the Canadian Securities Exchange (the “CSE”) under the stock symbol “FTRP”, as well as the OTCQX under the symbol FTRPF (see Reverse Takeover Transaction section, below, for details).
On October 8, 2020, Field Trip added Andrew Weil, M.D., a pioneer in the field of integrative medicine, to its medical advisory board. Dr. Weil will provide Field Trip with medical advice and expertise on healing-oriented approaches to healthcare, as well as guidance on extending the influence and reach of psychedelic therapies. Dr. Weil is the founder and director of the Andrew Weil Center for Integrative Medicine at the University of Arizona, which is leading the effort to develop a comprehensive curriculum in integrative medicine.
On October 14, 2020, Field Trip entered into a strategic partnership with the Heroic Hearts Project ("HHP"), an international non-profit organization that connects military veterans struggling with mental trauma to psychedelic therapies, to increase access to, and awareness of, psychedelic therapies for veterans struggling from mental health disorders such as PTSD. Under the terms of the relationship, HHP will be conducting active outreach and education programs for military veterans about the therapeutic potential of ketamine-assisted psychotherapy.
On October 22, 2020, Field Trip completed construction at its Chicago location, its third in the United States, and began providing therapies to people in December.
On November 27, 2020, Field Trip announced entry into a lease to establish a Field Trip Health location in Amsterdam, The Netherlands. The Amsterdam location is Field Trip’s first clinic in Europe and is slated to be the first Field Trip Health location that treats people with programs using truffles containing psilocybin.
During the month of December 2020, Field Trip successfully supported an application by a Canadian military veteran for reimbursement for Field Trip’s “Core+” program from the Medavie Blue Cross/Veterans Affairs Canada insurance program. This marks a significant milestone for military veterans wishing to explore psychedelic therapies to help treat the post-traumatic stress and other mental health challenges experienced by military veterans, as insurance coverage will make Field Trip’s treatment programs more affordable and accessible.
Joseph del Moral, Field Trip’s CEO, said, “We are making rapid progress maximizing value for shareholders by building out Field Trip’s complementary business lines that focus on both the development and the delivery of psychedelic therapies. Our deeply integrated platform combines drug and product developments, psychedelic-enhanced therapy and technology-enabled virtual care solutions. All the components work in concert with each other to increase our understanding of the therapeutic value of psychedelics and to deliver them to patients that need them most. With our early-mover advantage, a strong cash position, and a strong and growing reputation as thought leaders in the industry, we are well-positioned to propel our growth in the emerging market of psychedelic therapy.”
Subsequent Developments
On January 5, 2021, Field Trip closed its previously announced bought deal offering and issued 4,448,200 Units (including the full exercise of the over-allotment option) for gross proceeds of $20,016,900. Each Unit is comprised of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share (a “Warrant Share”) at an exercise price of $5.60 per Warrant Share until July 5, 2022. In the event that the volume weighted average trading price of the Common Shares exceeds $9.00 for ten (10) consecutive trading days, the Company shall have the right to accelerate the expiry date of the Warrants upon not less than fifteen (15) trading days’ notice. The Warrants commenced trading on the CSE under the symbol "FTRP.WT on January 5, 2021. In consideration of the services rendered by the underwriters in connection with the offering, Field Trip paid a cash commission equal to $763,046 and issued 169,565 compensation warrants (the "Compensation Warrants"). Each Compensation Warrant is exercisable to acquire one Common Share at an exercise price of $4.50 per Compensation Share until January 5, 2023. The Company plans to use the net proceeds from the offering for working capital and general corporate requirements.
On January 7, 2021, the Company announced, subject to completion of a final site inspection, that its Toronto clinic has been selected as a trial location for a MAPS-sponsored study on the safety, feasibility and preliminary outcomes of MDMA-assisted therapy to treat eating disorders (the “Eating Disorder Study”), including Anorexia Nervosa. Field Trip will be hosting MAPS-trained therapists who will be providing MDMA-assisted therapy to an initial cohort of individuals suffering from Anorexia Nervosa, and collecting safety, feasibility and preliminary outcome data. Field Trip also announced that it is becoming a financial supporter of MAPS, committing to making an annual contribution of $50,000, which will be matched by a collective contribution from the founders of Field Trip on a dollar-for-dollar basis. Site selection is conducted independently by MAPS Public Benefit Corporation and is unaffected by charitable contributions to MAPS.
On January 26, 2021, Field Trip announced the opening of a location in Atlanta, GA. The opening of the Atlanta clinic represents Field Trip’s 5th operating location and the first in 2021.
On January 28, 2021, the Company announced that its common shares were approved for trading on the OTCQX® Best Market retaining its current symbol FTRPF. Field Trip’s shares and warrants continue to trade on the Canadian Securities Exchange under the tickers FTRP and FTRP.WT, respectively. The Company is in the process of securing Depository Trust Company eligibility for its common shares to facilitate settlement of US trading.
On February 9, 2021, Field Trip announced the official opening of the Field Trip Natural Products Limited Research and Development Laboratory for Psychedelic Fungi in Mona, Jamaica (the “Jamaica Facility”). The Jamaica Facility, which is opening as part of Field Trip’s previously announced strategic partnership with the University of West Indies, is the world’s first legal research and cultivation facility dedicated exclusively to psilocybin-producing mushrooms and other plant-based psychedelics. The work at the new facility will leverage the research and development efforts that have been conducted by Field Trip at a temporary facility at UWI since January 2020, and will be broad-ranging, from genetics, breeding and cultivation work on many of the 180+ plus recorded species of psilocybin-producing mushrooms, to developing analytical methods for quality control, identification of novel molecules, as well as extractions and formulations for drug development purposes.
Additional Operational Updates
FT-104 Drug Development
FT-104 is a next-generation, synthetic psychedelic molecule whose design is, in part, based on classical serotonin 2A psychedelics. Patents are pending on FT-104’s structure, formulation and use in treating a variety of central nervous system disorders. FT-104 is concurrently undergoing optimization and cGMP scale-up, as well as furtherance of the pre-clinical data package needed for human clinical studies. Drug product formulation will begin in calendar Q1-2021 to develop dosage forms for administration of FT-104. CMC (chemistry manufacturing and controls) of the drug substance and the drug product, as well as all preclinical studies are expected to be completed by September 2021. We anticipate that FT-104 will enter into Phase 1 clinical trials before the end of the calendar year 2021.
Field Trip Health Centers
Field Trip Health centers are primarily dedicated to the treatment of depression and other mental health conditions using proprietary protocols and settings within a framework of ketamine-assisted therapies but will offer therapies using other psychedelic molecules where and when permitted.
During the third fiscal quarter, we began clinic construction in Amsterdam, Houston and Atlanta. Subsequent to quarter end, Field Trip completed construction and opened its Atlanta location in January 2021. The Company also entered into a lease in San Diego, California, bringing the total number of Field Trip Health centers to a total of eight.
Digital Tools: Trip and Portal
Field Trip has developed two digital tools:
In October 2020, we launched Portal, along with an updated version of our Trip app on Apple and Android platforms. Our Trip app’s user base grew by 144% from the second fiscal quarter. We anticipate a Trip premium version will be released in the second half of calendar 2021, along with further enhancements to Portal.
Effects of COVID-19 Pandemic on Operations
During the third fiscal quarter, Field Trip was not significantly affected by the COVID-19 pandemic. California’s regional coronavirus stay-at-home order for the months of December 2020 and January 2021 temporarily impacted the patient flow at our Santa Monica clinic, which remained open during the seven weeks the order was in effect. We expect patient growth to accelerate in Santa Monica over the next two quarters as COVID-19 restrictions continue to abate. During the initial outbreak of the pandemic, the Toronto clinic was temporarily closed from March to May 2020; however, the number of completed patient sessions in Toronto continues to be in line with management's expectations. Since June 2020, the Clinics have not been subject to any "lock-down" restrictions as they are medical clinics and deemed an "essential service." As the COVID-19 pandemic has resulted in an estimated three-fold increase in the incidence of depression symptoms in the US, we anticipate that we will see an increase in long-term demand for our depression related psychedelic therapies as case counts start to diminish in the future. We anticipate that the long-term goals of the Company will require additional capital contributions via debt or equity financings. In the event that the impact of COVID-19 worsens and negatively affects capital markets generally, there is a risk that the Company may not be able to secure funding for these long-term objectives.
Reverse Takeover Transaction
On October 1, 2020, Field Trip completed its previously announced going public transaction (the “Transaction”) pursuant to the terms of an agreement entered into on August 21, 2020 between Field Trip Psychedelics Inc. (“FTP”), Newton Energy Corporation (“Newton”) and Newton’s wholly-owned subsidiary. The Transaction constituted a Reverse Takeover by way of a three-cornered amalgamation under applicable securities law, with FTP as the reverse takeover acquirer and Newton as the reverse takeover acquiree.
The Transaction does not constitute a business combination as Newton does not meet the definition of a business under IFRS 3 – Business Combinations. Immediately after the Transaction, shareholders of FTP owned 100% of the voting rights of Newton. As a result, the Transaction has been accounted for as a capital transaction with FTP being identified as the accounting acquirer and the equity consideration being measured at fair value, using the acquisition method of accounting. The Transaction has been accounted for in the consolidated financial statements as a continuation of the financial statements of FTP. Immediately prior to the Transaction, Newton changed its name to Field Trip Health Ltd.
In connection with the completion of the Transaction, Newton common shares listed on the NEX board of the TSXV were delisted on September 30, 2020. Field Trip Health Ltd. shares commenced trading on the CSE on October 6, 2020, under the stock symbol FTRP.
Purchase Price Consideration
FTP is deemed to have acquired the former Newton as part of the Transaction. The Transaction was accounted for using the acquisition method of accounting whereby the assets acquired, and liabilities assumed were recorded at their estimated fair value at the acquisition date. The acquisition did not meet the criteria for a business combination and is therefore treated as a recapitalization under the scope of IFRS 2 – Share Based Payments. The consideration consisted entirely of shares of Field Trip Health Ltd. which were measured at the estimated fair value on the date of acquisition (795,106 shares at $2.00 per share). The fair value of the Common Shares issued to the former Newton shareholders was determined to be $1,590,212 based on the fair value of the shares issued. In connection with the acquisition of Newton, the Company incurred acquisition costs of $573,435.
| Consideration: Newton Commons Shares | 1,590,212 |
| Consideration: Newton Options | 74,982 |
| Total consideration | 1,665,194 |
| Transaction costs paid | 573,435 |
| 2,238,629 | |
| Identifiable assets acquired: MJO Cash | 107,520 |
| Listing Expense | 2,131,109 |
Financial Highlights
For our third fiscal quarter ended December 31, 2020, we earned patient services revenues of $316,329 from our Toronto, New York and Santa Monica clinics, a 235% increase over our second fiscal quarter patient services revenues of $94,532. Net loss for our third fiscal quarter of $8,275,669 was primarily due to general and administration expenses of $2,989,160, listing expenses of $2,131,109 relating to the Transaction, research and development expenses of $1,064,744, patient services expenses of $668,911, sales & marketing expenses of $534,848, depreciation and amortization of $375,745, occupancy costs of $288,452 and realized foreign exchange loss of $454,475. Net loss for our prior year’s third fiscal quarter of $1,055,666 was primarily due to general and administration expenses of $683,604, occupancy costs of $149,380, sales and marketing expenses of $96,391 and research and development costs of $81,113.
For the nine months ended December 31, 2020, we earned patient services revenues of $434,220 from our Toronto, New York and Santa Monica clinics, despite a temporary closure in Toronto from March to May and New York and Santa Monica contributing revenues only beginning in August and September 2020 respectively. We expect to scale our revenue as the number of patients treated at our locations increases, and with the addition of our Chicago location which just began treating patients in late December and the opening of our Atlanta location in January 2021. We will continue our rollout of clinics across North America and Europe, with target openings in Amsterdam and Houston in April 2021.
Net loss of $15,167,017 was primarily due to general and administration expenses of $6,525,224, research and development expenses of $2,545,735, listing expenses of $2,131,109 relating to the Transaction, foreign exchange loss of $1,045,486, patient services expenses of $958,000, sales & marketing expenses of $955,155, depreciation and amortization of $855,083 and occupancy costs of $464,112. Net loss for the period ended December 31, 2019 of $1,737,084 was primarily due to general and administration expenses of $1,247,935, occupancy costs of $222,852, sales and marketing expenses of $139,973 and research and development costs of $81,113.
Selected Consolidated Financial Information
The following table sets forth selected financial information derived from the Company’s unaudited condensed interim financial statements for the three and nine months ended December 31, 2020 and periods ended December 31, 2019, prepared in accordance with IAS 34 in a manner consistent with the Company’s annual audited financial statements. The following information should be read in conjunction with the financial statements and management’s discussion and analysis, which are available on the Company’s website at www.fieldtriphealth.com and under the Company’s SEDAR profile at www.sedar.com.
| 3 months ended | 3 months ended | 9 months ended | Period from April 2, 2019 (Date of Incorporation) to | |
| (unaudited) | December 30, 2020 | December 30, 2019 | December 30, 2020 | December 30, 2019 |
| $ | $ | $ | $ | |
| Revenue | 316,329 | - | 434,460 | - |
| Operating Expenses | ||||
| General and administration | 2,989,160 | 683,604 | 6,525,224 | 1,247,935 |
| Occupancy costs | 288,452 | 149,380 | 464,112 | 222,852 |
| Sales and marketing | 534,848 | 96,391 | 955,155 | 139,973 |
| Research and development | 1,064,744 | 81,113 | 2,545,735 | 81,113 |
| Depreciation and amortization | 375,745 | 19,239 | 855,083 | 19,272 |
| Patient services | 668,911 | - | 958,000 | - |
| 5,921,860 | 1,029,727 | 12,303,309 | 1,711,145 | |
| Other Income (Expenses) | ||||
| Finance expense | (84,688) | (3,547) | (178,045) | (3,547) |
| Other expense | (454,341) | (22,392) | (989,014) | (22,392) |
| Listing expense | (2,131,109) | - | (2,131,109) | - |
| Net Loss | (8,275,669) | (1,055,666) | (15,167,017) | (1,737,084) |
| Net Loss per Share - Basic and Diluted | (0.22) | (0.10) | (0.52) | (0.22) |
| Cash (including Restricted Cash) | 9,979,319 | 1,057,334 | ||
| Other Receivables | 585,236 | 7,297 | ||
| Total Assets | 20,066,620 | 1,175,561 | ||
| Total Non-Current Financial Liabilities | 5,541,331 | - | ||
| Distributions | - | 13,596 |
Conference Call
The Company will conduct a conference call and webcast to review its results the following day, Wednesday, February 17, 2021 at 8:00 am ET. To access the call, please dial 1-877-407-9716 or 1-201-493-6779 and provide conference ID 13715986. A live webcast of the conference call can be accessed via the Events and Presentations section of the Field Trip Health Investor Relations website or via the following link: http://public.viavid.com/index.php?id=143376.
For those unable to attend the live call, a telephonic replay will be available until Wednesday, March 3, 2021. To access the replay of the call dial 1-844-512-2921 or 1-412-317-6671 and provide conference ID 13715986. An archived copy of the webcast will be available on the Events and Presentations section of the Field Trip Health Investor Relations website after the conclusion of the call.
About Field Trip Health Ltd.
Field Trip is the global leader in the development and delivery of psychedelic therapies. With our Field Trip Discovery division leading the development of the next generation of psychedelic molecules and conducting advanced research on plant-based psychedelics including psilocybin-producing fungi and our Field Trip Health division building centers for psychedelic therapies opening across North America and Europe along with the digital and technological tools that will enable massive scale we help people, from those in treatment to those seeking accelerated personal growth, with a simple, evidence-based way to heal and heighten engagement with the world.
Learn more at https://www.meetfieldtrip.com, https://www.fieldtriphealth.com and https://www.fieldtriphealth.nl.
Follow us on Twitter and Instagram: @fieldtriphealth
To receive company updates about Field Trip and to be added to the email distribution list please sign up here.
For further information, contact Ronan Levy, Executive Chairman, and a Director at Field Trip, at 1 (833) 833-1967.
Cautionary Note Regarding Forward-Looking Information
This release includes forward-looking information within the meaning of Canadian securities laws regarding Field Trip and its business, which may include, but are not limited to, statements with respect to the listing of the common shares of Field Trip on the Canadian Securities Exchange, and the timing of such events. Often but not always, forward-looking information can be identified by the use of words such as "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of Field Trip and are based on assumptions and subject to risks and uncertainties. Although the management of Field Trip believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the COVID-19 epidemic, the medical clinic industry, market conditions, economic factors, management's ability to manage and to operate the business and the equity markets generally. Although Field Trip has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Field Trip does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the Canadian Securities Exchange, nor its Regulation Services Provider, nor the OTC Markets have approved nor disapproved the contents of this news release or accept responsibility for the adequacy or accuracy of this release.
Media contacts:
Rachel Moskowitz
Autumn Communications
202-276-7881
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Nick Opich / McKenna Miller
KCSA Strategic Communications
212-896-1206 / 347-487-619
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Investor contacts:
Elizabeth Barker
KCSA Strategic Communications
212-896-1203
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SOURCE Field Trip Health Ltd.
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| Market Cap: | US$13.130M |
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