Field Trip Health Raises Largest Funding in Canada for Psychedelics Company

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Field Trip Health Ltd., a psychedelics company that is experimenting with ketamine in the treatment of depression, has raised $ 95 million from a host of biotech and healthcare-focused hedge funds – the largest round of financing of such a business in Canada to date.

The deal will see investors buy 14.6 million shares of Field Trip at $ 6.50 a share, a 21% discount from its record market price of $ 8.25 in mid-February.

The Toronto-based company has seen its shares rise more than 120 percent since going public through a reverse takeover on the Canadian Stock Exchange last October. This skyrocketing was fueled in part by general market froth, but also by the decriminalization of magic mushrooms in a number of US states in November, which was seen by investors as a major turning point for the industry. psychedelics.

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Field Trip generates most of its income by administering ketamine-enriched psychotherapy to patients at five clinics in several cities across North America, including Toronto. Although ketamine is most commonly used as an anesthetic in surgical procedures, it is a controlled substance in Canada and its limited use is permitted by prescription only for patients with anxiety and depression.

Prior to this latest round of funding, Field Trip had approximately $ 10 million in cash. It only generated $ 316,329 in patient service revenue for the three months ended December 31, 2020.

Co-founder and executive chairman Ronan Levy said the company plans to use some of the new funding to open 70 more clinics in North America and Europe by 2025. The money will also be used to further develop the FT-104 , a patent pending synthetic psychedelic. molecule which he believes could have new properties in the treatment of mental health.

Soleus Capital, a Connecticut-based private equity firm that invests in the healthcare industry, was the primary investor in the funding. Others included biotech-focused funds such as Dallas-based Avidity Partners, New York-based Israeli funds Sphera, Pura Vida Investments and Jennison Associates. Notably, none of Field Trip’s major investors was Canadian.

Canadian investment bank Bloom Burton Securities Inc. was the lead underwriter of the transaction, Stifel GMP and Canaccord Genuity Corp. completing the union.

According to Mr. Levy, the deal was made mainly through the involvement of Bloom Burton, who brought together many biotech investors.

The funding is just the latest in a series of major investments by US funds in the psychedelic space. In November, billionaire Peter Thiel donated US $ 125 million to Berlin-based startup ATAI Life Sciences to fund preclinical trials of arketamine for depression. In January, Toronto-based MindMed Inc. raised $ 92 million from investors for research into the use of LSD and MDMA, also known as ecstasy, to treat blood disorders. the mood.

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