Field Trip Health (NASDAQ: FTRP) will divide two of its divisions into public companies of their own.
The company’s board of directors gave unanimous approval to a reorganization that would result in the separation of Field Trip Health and Field Trip Discovery into two independent companies. Field Trip Discovery will be named Reunion Neuroscience Inc., while Field Trip Health will change its name to Field Trip Health and Wellness Ltd.
According to a press release by the company, Health and Wellness is expected to complete financings for gross proceeds of approximately CA$20 million, which will be led by both the company and Oasis Management Company.
In November of 2021, Field Trip published its second fiscal quarter of 2022 report and stated that a “strategic review of the current corporate structure” was underway. The announcement to create these two new divisions is the latest development in this reorganization.
Following the movement, Reunion will remain listed on the Nasdaq and Toronto Stock Exchange. Field Trip Health and Wellness, on the other hand, will be subject to exchange approval to list on the TSX Venture Exchange. Each current share is expected to be exchanged for one common share of Reunion and approximately 0.86 common shares of H&W.
“Over the course of the last three years, we have built two leading companies in the emerging psychedelic industry under a single roof,” Joseph del Moral, the company’s CEO, commented.
“The strategic synergy that underlies our original strategy will be maintained through a mutually beneficial Collaboration Agreement.”
The press release that announced the reorganization made no mention of Field Trip Digital, another of the company's divisions, and it is not clear if it will fall under Reunion or Health and Wellness.
Photo: Courtesy of Chris Liverani on Unsplash
