During the last month, we have noticed a significant increase in activity in the psychedelic sector and this is a trend that has caught our attention. The sector looks similar to the cannabis industry in 2016/2017 as companies are lining up to go public on a stock exchange.
Earlier this week, Field Trip announced plans to speed up the go public process and to do so has raised capital through Canaccord Genuity. When compared to its peers, we believe that the company represents an attractive growth opportunity and are favorable on the structure of the business.
A positive sign for Field Trip has been the level of the demand for its pre-IPO stock. The company’s private placement with Canaccord Genuity is definitely oversubscribed and we find this to be significant. Field Trip has been building a base of shareholders and executing on a multi-faceted growth strategy.
Field Trip represents a more advanced play on the psychedelic therapy market and is taking an integrated approach to using ketamine-enhanced psychotherapies to treat a variety of mental health conditions. The company is in the process of building out a network of clinics to initially provide ketamine-enhanced psychotherapies to treat depression.
Over the long term, Field Trip plans to expand into new therapeutics as they are approved and has plans to open 50 to 60 clinics across Canada and the US by 2023. The company has done a great job at raising capital and this aspect of the story will play a key role in its ability to execute on its strategy.
One of the reasons we are excited about Field Trip is due to the structure of the business. The company is investing in strategic verticals of the psychedelic value chain through its various divisions. The divisions are focused on opening clinics, starting clinical trials, building cultivation and processing facilities, and implementing virtual therapy.
Field Trip is led by a management team that has a proven track record of success in the cannabis clinic market and we are favorable on the expertise that they have in this field. We will monitor how the management team is able to use the proceeds from the private placements to build out its clinic network and to execute on additional high-growth initiatives.
If you are interested in learning more about Field Trip, please send an email to firstname.lastname@example.org to be added to our distribution list.