The article Field Trip Health & Wellness Files for Credit Protection; CEO Resigns was originally published on Microdose.
For more on Field Trip’s recent news, see Field Trip Health & Wellness to Close Clinics in 5 Locations
Field Trip Health & Wellness Obtains CCAA Protection
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.