If you have not been following Field Trip Health Ltd. (CSE: FTRP) (OTCQX: FTRPF), you may want to put the company on your radar after it closed a massive private placement.
Last week, Field Trip reported to have closed a previously announced $95 million bought deal short form prospectus offering. The financing included the full exercise of the underwriters’ over-allotment option and we consider this to be a positive for the company.
Field Trip is considered to be a leader in the development and delivery of psychedelic therapies, and we are excited to see how the management team uses the proceeds to advance the business.
Field Trip CEO Joseph del Moral stated that the closing of the financing is an important milestone for the business as it provides the resources that are needed to execute on previously announced initiatives. We believe the size of the financing is a testament to the strength of the platform and will closely monitor the business on a going forward basis.
Soleus Capital Management was the lead investor in the financing, and we believe that Field Trip is backed by smart money. The firm stated that it believes that Field Trip is positioned to establish itself as a global leader in the delivery and development of psychedelic therapies for depression and other mental health indications with high unmet need.
We are favorable on the size of the total addressable market (TAM) of the indications that Field Trip is focused on. The company plans to use the proceeds from the financing for the ongoing development of the “FT-104” novel psychedelic development program, the opening of new Field Trip Health centers, and for working capital and general corporate purposes.
Going forward, we expect Field Trip to accelerate the rollout of its branded health centers across North America and Europe. The company has the proceeds to fund this initiative and will still have enough resources to capitalize on unique and accretive growth opportunities.
We believe that Field Trip has been nothing short of an execution story and will monitor how the story advances from here. If you are interested in learning more about Field Trip Health, please send an email to firstname.lastname@example.org with the subject “Field Trip Health” to be added to our distribution list.
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