Field Trip Health Ltd. Reports Fiscal Fourth Quarter and Full Year 2021 Financial Results
June 24th, 2021
- Field Trip completes FY2021 as the largest vertically integrated psychedelics company positioned to be a leader in the emerging industry
- Continues to leverage its early mover opportunity by investing in its drug development strategy and the build out of a globally recognized brand of psychedelic-assisted therapy centers
- Closed FY2021 with $111,817,443 in unrestricted cash and cash equivalents, funds held in trust and short-term investments after successfully completing two bought deal offerings for gross proceeds of $115 million
- Development of FT-104, a novel psychedelic molecule with pending patents, continues to progress with GMP production underway in preparation for Phase 1 studies
- 6 Field Trip Health centers have commenced operations and are in early stages of ramp up to break-even; Q4 2021 patient services revenues grew by 66% over previous quarter to $526,435
- Construction completed in Amsterdam, NL and construction underway on locations in San Diego CA, Seattle WA, Washington DC and Fredericton NB and, new leases have been signed for Field Trip Health centers in Stamford CT, Austin TX and Vancouver BC and construction will be commencing in San Carlos CA shortly
- Field Trip is pleased to announce, due to the diversified demand coming from different patient demographic groups, an expansion of its offerings to include group Ketamine Assisted Psychotherapy (“KAP”) and group ongoing therapy for patients who complete the program.
TORONTO, June 24, 2021 (GLOBE NEWSWIRE) — Field Trip Health Ltd. (TSX: FTRP; FTRP.WT; OTCQX: FTRPF) (“Field Trip”), a leader in the development and delivery of psychedelic therapies, reported its fiscal year end results for the three and twelve months ended March 31, 2021. All results are reported under International Financial Reporting Standards (“IFRS”) and in Canadian dollars, unless otherwise specified.
Key Highlights and Developments During Fiscal Fourth Quarter 2021
During the fiscal fourth quarter, Field Trip continued to execute on its FT-104 drug development strategy and the buildout of a globally recognized brand of psychedelic-assisted therapy clinics, positioning it as an early mover in the emerging psychedelics industry, which could be a $100 billion market according to Canaccord Genuity. The Company anticipates that interest in, and demand for, psychedelic therapies will continue to rapidly expand over the coming years, and the clinic network will remain a pivotal asset to validate clinical outcomes in real setting.
On January 5, 2021, the Company closed its previously announced bought deal offering (the “January BD Offering”) and issued 4,448,200 Units at a price per Unit of $4.50 for gross proceeds of $20,016,900. Each Unit comprised one common share (“Common Share”) of the Company and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price of $5.60 per Warrant Share until July 5, 2022. The Warrants commenced trading on the CSE under the symbol “FTRP.WT on January 5, 2021.
On March 17, 2021 the Company completed a bought deal offering (the “March BD Offering”) resulting in the issuance of 14,661,499 Common Shares of the Company at a price of $6.50 per Common Share for gross proceeds of $95,299,744. In consideration of the services rendered by the underwriters in connection with the March BD Offering, the Company paid a cash commission equal to $4,961,472 and issued 865,303 compensation warrants (the “Compensation Warrants”). Each Compensation Warrant is exercisable to acquire one Common Share at an exercise price of $6.50 per Compensation Share until March 17, 2023 The lead investor in the Offering was Soleus Capital with additional participation by Avidity Partners, Sphera Funds, Pura Vida Investments, Jennison Associates and other healthcare specialized institutional investors.
As at March 31, 2021 Field Trip had unrestricted cash and cash equivalents, funds held in trust and short-term investments of $111,817,443.
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. 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 fifth 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 (“OTCQX”) retaining its current symbol FTRPF. At the time, Field Trip’s Common Shares and Warrants continued to trade on the CSE.
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 opened 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.
Joseph del Moral, Field Trip’s CEO, said, “Through our strategic and expeditious execution of our business plan in fiscal 2021, Field Trip has emerged as one of the foremost players in the psychedelics sector. Among other accomplishments, we commenced development work on, and filed provisional patent applications for, FT-104, our next-generation, psychedelic molecule. The pre-clinical studies suggest that FT-104 is a strong 5HT2A receptor agonist that can be delivered with high bioavailability and will produce a reliably short-duration of psychedelic experience in the range of two to four hours. This is approximately half the duration of psilocybin. We completed significant optimization and scale-up of the chemistry and GMP-compliant production is scheduled, as well as furtherance of the pre-clinical data package needed for human clinical studies.”
Dr. Ryan Yermus, Field Trip’s Chief Clinical Officer added: “In addition to our drug development work, we opened four Field Trip Health Centers during the year, with our fifth and sixth locations in Atlanta and Houston opening subsequent to year end, with more locations underway. The strategic importance of the clinics is to enable us to collect large amounts of data on clinical outcomes associated with the set, setting and therapeutic protocols of psychedelic therapies, to innovate new models of care and to identify areas of unmet need in psychedelics.
“We are also excited to be launching new therapeutic programs to increase patient access and clinical outcomes, including continuing therapy for patients who have completed KAP treatments, as well as group KAP offerings. These new offerings, along with other initiatives currently in development, reflect some of the insights generated from being an early mover with scale in a real-world clinical setting,” added Dr. Yermus.
Mr. del Moral said, “These initiatives have laid the groundwork for the business to scale in fiscal 2022, including the anticipated launch of Phase 1 clinical trials for FT-104, and the continued rollout of our Field Trip Health Centers. Since launching these clinics, we’ve demonstrated the remarkable success of our therapies with many of our patients reporting substantially improved depression and anxiety scores which has enabled us to generate a Net Promoter Score (NPS)* amongst patients who have completed our therapies of +66. We have a strong cash position to facilitate the execution of our strategic plan and are confident that our deeply integrated platform, which combines drug and product development, psychedelic-assisted therapies and technology-enabled virtual care solutions, will enable us to further our mission to bring psychedelic-based treatments to a broader audience.”
*NPS is a universally recognized metric for measuring customer loyalty. Field Trip’s score of +66 is based on patient feedback scores ranging from 0 to 10 for how likely they are to recommend Field Trip to their friends and colleagues. According to Survey Monkey’s global benchmark data, which accounts for the NPS of more than 150,000 organizations, the average NPS score is +32.
On May 4, 2021, the Company announced the opening of its fifth location in the United States (and sixty overall) in the city of Houston, TX. The Houston location is the second Field Trip Health center to open in calendar year 2021. Field Trip also announced that it has entered into leases and has commenced, or will soon commence, construction to build Field Trip Health centers in San Diego, CA, San Carlos, CA, Seattle, WA, Washington DC and Fredericton, NB.
On May 6, 2021, Field Trip announced that its Common Shares became eligible for electronic clearing and settlement through The Depository Trust Company (“DTC”) in the United States. DTC is a subsidiary of The Depository Trust & Clearing Corporation, a United States company that manages the electronic clearing and settlement of publicly-traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered “DTC eligible.” This electronic method of clearing securities speeds up the receipt of stock and cash and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a wider selection of brokerage firms.
On May 20, 2021, the Company announced the appointment of former US Senate Majority Leader Tom Daschle as a Special Advisor to the Company. Senator Daschle is one of the longest serving Senate Democratic leaders in history and one of only two to serve twice as both Majority and Minority Leader. In 1978, he was elected to the U.S. House of Representatives, where he served eight years. In 1986, he was elected to the U.S. Senate and was chosen as Senate Democratic Leader in 1994. Senator Daschle is also the Founder and CEO of the Daschle Group, a Public Policy Advisory of Baker Donelson and a legal and government affairs firm that advises clients on a broad array of economic, policy and political issues.
On June 7, 2021 Field Trip’s Common Shares and Warrants commenced trading on the Toronto Stock Exchange (“TSX”) under the ticker symbols “FTRP” and “FTRP.WT” respectively. The Common Shares continue to trade on the OTCQX market under the symbol “FTRPF”. In connection with the TSX listing, Field Trip’s Common Shares and Warrants were delisted from the Canadian Securities Exchange (“CSE”). In conjunction with its TSX listing, the Company announced that it has bolstered its Board of Directors with the appointments of Barry Fishman and Ellen Lubman. Mr. Fishman is an accomplished business leader and Board Director with proven success in strategy development, performance enhancement and public company governance, with an expansive global network and deep pharmaceutical knowledge. Ms. Lubman brings nearly 20 years of experience in corporate and business development, portfolio strategic planning, financial strategy and investor relations through leadership roles in small biotech and large pharma, starting her career as a Wall Street equity research analyst.
On June 8, 2021, the Company announced that it had applied to list its Common Shares on the NASDAQ Stock Market (“NASDAQ”). In advance of an anticipated listing on NASDAQ, Field Trip will file a Registration Statement with the United States Securities and Exchange Commission. The listing of Common Shares on NASDAQ remains subject to the review and approval of the listing application and the satisfaction of all applicable listing and regulatory requirements, as well as effectiveness of the registration statement. Field Trip will continue to maintain the listing of its Shares on the Toronto Stock Exchange under the symbol “FTRP”.
The Company also announced that it anticipates being able to commence Phase 1 human trials for FT-104 and expects to have 20 Field Trip Health centers operating or under construction by the end of December 2021, including its existing and announced locations in New York, NY, Toronto, ON, Los Angeles, CA, Chicago, IL, Houston, TX, Atlanta, GA, San Diego, CA, San Jose, CA, Seattle, WA, Washington, DC, Fredericton, NB and Amsterdam, NL.
For our fourth fiscal quarter ended March 31, 2021, we earned patient services revenues of $526,435 from our Toronto, New York, Santa Monica, Chicago and Atlanta clinics, a 66% increase over our third fiscal quarter patient services revenues of $316,329. Net loss for our fourth fiscal quarter of $7,950,590 was primarily due to general and administration expenses of $4,636,669, research and development expenses of $871,955, sales & marketing expenses of $675,068, patient services expenses of $586,328, depreciation and amortization of $539,321, occupancy costs of $433,279 and realized foreign exchange loss of $532,656. Net loss for our prior year’s fourth fiscal quarter of 2020 of $891,240 was primarily due to general and administration expenses of $1,062,141, sales and marketing expenses of $165,737, depreciation and amortization of $127,048 and research and development costs of $112,079, partially offset by a realized foreign exchange gain of $690,579.
For the fiscal year ended March 31, 2021, we earned patient services revenues of $960,655 from our Toronto, New York, Santa Monica, Chicago and Atlanta clinics, despite a temporary closure in Toronto from March to May 2020 and Chicago and Atlanta contributing revenues only beginning March 2021. We expect to scale our revenue as the number of patients treated at our locations increases, and with the addition of our Houston location, which just began treating patients in May 2021.
Net loss of $23,117,607 was primarily due to general and administration expenses of $11,161,893, research and development expenses of $3,417,690, listing expenses of $2,180,142 relating mainly to the Transaction, sales and marketing expense of $1,630,223, patient services expense of $1,544,328, realized foreign exchange loss of $1,578,142, depreciation and amortization of $1,394,404 and occupancy costs of $897,391. Net loss for the period ended March 31, 2020 of $2,628,324 was primarily due to general and administration expenses of $2,310,076, occupancy costs of $317,476, sales and marketing expenses of $305,710, research and development costs of $193,192 and depreciation and amortization of $146,320, partially offset by a realized foreign exchange gain of $667,526.
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 twelve months ended March 31, 2021 and periods March 31, 2020, 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.
The Company will conduct a conference call and webcast to review its results the following day, Friday, June 25, 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 13720523. 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=145259
For those unable to attend the live call, a telephonic replay will be available until Friday, July 9, 2021. To access the replay of the call dial 1-844-512-2921 or 1-412-317-6671 and provide conference ID 13720523. 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 a 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 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 in need with a simple, evidence-based way to heal and heighten engagement with the
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. 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 listing of our common shares on NASDAQ, the timing and results of its research and development programs, the opening of additional clinics, 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 Toronto Stock Exchange, nor its Regulation Services Provider, nor the OTC Markets have approved the contents of this release or accept responsibility for the adequacy or accuracy of this release.
Nick Opich / McKenna Miller
KCSA Strategic Communications
212-896-1206 / 347-487-6197
KCSA Strategic Communications
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