Field Trip Health & Wellness Obtains CCAA Protection
Field Trip Health & Wellness Ltd. (FTHWF) has received an Initial Order for creditor protection from the Ontario Superior Court under the Companies’ Creditors Arrangement Act (CCAA). This decision follows a comprehensive review of the company’s financial situation by its Board of Directors. The CCAA process aims to facilitate a sale and investment solicitation to ensure the company's survival. A significant corporate restructuring includes staff reductions, the resignation of CEO Ronan Levy, and the appointment of Keith Merker as Chief Restructuring Officer. Trading of FTHWF shares has been suspended, and the company has been authorized to incur no further expenses related to disclosure obligations during this period.
- Company is undergoing a structured restructuring process to emerge as a going concern.
- Appointment of Keith Merker as Chief Restructuring Officer may lead to improved oversight during the restructuring.
- The company has filed for creditor protection, indicating severe financial distress.
- Trading of the company's securities has been suspended, potentially impairing liquidity for shareholders.
- Significant staff reductions indicate operational challenges.
TORONTO, March 22, 2023 (GLOBE NEWSWIRE) -- Field Trip Health & Wellness Ltd. (TSX-V: FTHW) (“Field Trip” or the “Company”) today announced that it has obtained an Order (the “Initial Order”) for creditor protection from the Ontario Superior Court of Justice (Commercial List) (the “Court”) under the Companies’ Creditors Arrangement Act (the “CCAA”). PricewaterhouseCoopers Inc. has been appointed as the CCAA monitor (the “Monitor”).
After careful consideration of the Company’s cash position and available alternatives by the Independent Committee of the Company's Board of Directors, and thorough consultation with the Company’s legal and financial advisors, the Board of Directors determined that it is in the best interests of Field Trip and its subsidiaries to file for creditor protection under the CCAA.
The Initial Order includes, among other things, a stay of proceedings in favour of Field Trip and its subsidiaries. The Company intends to conduct an expedited sale and investment solicitation process with the goal of facilitating a transaction that enables the Company to emerge from CCAA protection as a going concern.
The Company has also announced a company-wide reduction in corporate and clinical staff, and effective immediately, Ronan Levy has resigned as Director of the Company and will no longer serve as Chairman and CEO. Mr. Levy will continue as an advisor to the Company as it navigates this process. Keith Merker, who presently serves as Director, Chair of the Audit Committee and Chair of the Independent Committee of Field Trip, has been appointed as Chief Restructuring Officer.
The Company intends to operate its remaining clinic locations in the ordinary course during the CCAA proceedings under the oversight of the Monitor. The Company has been authorized by the Court to incur no further expenses in relation to disclosure obligations under the Securities Act (Ontario) or other securities legislation, including the issuance of press releases. Effective today, trading in the Company's securities has been suspended. The Company’s common shares will be transferred to the NEX Board of TSX Venture Exchange during the suspension period.
The Monitor has set up a website at: www.pwc.com/ca/fieldtrip, where updates on the restructuring process, the Monitor’s reports to the Court, Court orders and other information will be posted as soon as they are available.
About Field Trip Health & Wellness Ltd.
Field Trip operates four clinics in Toronto, Vancouver, New York and Santa Monica, where it administers proprietary psychedelic therapies that generate transformative results for people in the treatment of mental health conditions.
Learn more at https://www.meetfieldtrip.com, https://www.fieldtriphealth.com and https://www.fieldtriphealth.nl.
Follow us on Twitter and Instagram: @fieldtriphealth
Cautionary Note Regarding Forward-Looking Information
This release includes forward-looking information (within the meaning of Canadian securities laws and within the meaning of the United States Private Securities Litigation Reform Act of 1995) regarding the Company 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 the Company and are based on assumptions and subject to risks and uncertainties. Although the management 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. Although the Company 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 the Company 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. Additional information relating to the Company, can be located on the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange, nor its Regulation Services Provider, have approved the contents of this release or accept responsibility for the adequacy or accuracy of this release.
CONTACTS:
Field Trip Health & Wellness Ltd.:
Keith Merker
keith.merker@fieldtriphealth.com
Investor contacts:
Phil Carlson / Sophia Bashford
KCSA Strategic Communications
(646) 573-0776) / (929 246-7307)
fieldtripIR@kcsa.com
SOURCE Field Trip Health & Wellness Ltd.
FAQ
What is the recent update for Field Trip Health & Wellness Ltd. regarding creditor protection?
Why has trading of Field Trip Health & Wellness Ltd. (FTHWF) been suspended?
Who is the new Chief Restructuring Officer for Field Trip Health & Wellness Ltd.?
What does the Initial Order for Field Trip Health & Wellness Ltd. entail?
What are the implications of the company's CCAA filing for shareholders?
