Field Trip Health Ltd (NASDAQ: FTRP) has gotten unanimous approval from its board to finish reorganising its operations. The reorganisation will separate the company into Field Trip Health and Field Trip Discovery into different sectors.
The company will split into two
Moreover, the company will change the name of the divisions. The Field Trip Discovery division would be Neuroscience Inc, while Field trip Health will become Field Trip Health and Wellness. After the company completes the purchase, Field Trip Health and Wellness can finish the C$20million financing. The company is working with the Oasis Management Company to complete the funding.
This transaction is in line with the company’s goal in November 2021 to restructure its operations.
According to the company’s CEO, Joseph del Moral, the company has built two different businesses in the psychedelic industry after working for three years. As a result, the company has developed innovative drugs and gained operational expertise and knowledge.
Investors will benefit more from two companies
The CEO adds that the board has reviewed the two companies and decided that they can be independent. This move would enable them to grow to their maximum potential and make the most profit. However, the companies would still maintain synergy via their collaboration agreement. The move would also allow investors to benefit from both companies separately.
After the transaction closes, the company plans to exchange one share of Neuroscience Inc with 0.86 shares from Field Trip Health and Wellness. Furthermore, the latter will be listed on TSX Exchange, while Neuroscience Inc will remain on NASDAQ.
For the company to complete the transaction, it will require approval from its shareholders and a court. It will also be subject to other conditions.
After the transaction, each company will have its structure and management. The management of a company will be according to its needs. They will also have differences in capital structure. Additionally, capital allocation will depend on their needs.
Neuroscience Inc will continue as the drug development and discovery branch. It will also give Field Trip Health and Wellness $5 million as part of the financing. Bloom Burton Securities will offer legal advice to Field Trip throughout the process.