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Field Trip Health & Wellness Seeks Buyer, Announces CEO Resignation
After recently disclosing plans to shut down 5 of its psychedelic-assisted psychotherapy treatment program locations, Field Trip Health & Wellness (H&W) announced this week that it intends to conduct an expedited sale of its business.
Field Trip H&W has obtained an order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA), a Canadian federal law that allows insolvent corporations that owe creditors more than $5 million to restructure their business and financial affairs.
The Toronto, Ontario-based company also announced that Ronan Levy has resigned as its director and will no longer serve as chairman and CEO. During the sale process, Levy will remain with Field Trip as an advisor, and Keith Merker, who serves as director, Audit Committee chair, and chair of the Independent Committee of Field Trip, has been appointed as chief restructuring officer. The company is also engaging in an organization-wide reduction of corporate and clinical staff.
In May 2022, Field Trip Health announced it was splitting its operations into 2 independent, public companies: Field Trip H&W, which would operate 12 psychedelic-assisted psychotherapy treatment programs, as well as a digital, at-home ketamine-assisted psychotherapy program, and Reunion Neuroscience, which previously operated as the company’s drug discovery division under the name Field Trip Discovery.
Field Trip H&W formed the Independent Committee of its board of directors in December 2022 to assess strategic options, review operations, and investigate potential cost reductions, restructuring, and options for subleasing or closing clinic locations. On March 15, Field Trip H&W announced that it was closing psychotherapy treatment clinics in the following 5 cities, effective April 15:
- Chicago, Illinois;
- Washington, DC;
- Seattle, Washington;
- San Diego, California; and
- Fredericton, New Brunswick, Canada.
Field Trip H&W intends to continue operating its remaining clinic locations during its sale proceedings, according to a news release. The firm PricewaterhouseCoopers Inc. has been appointed as the CCAA monitor to oversee the restructuring process.
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