- Newton Energy (TSXV:NTN.H) has entered into a letter of intent with Field Trip Psychedelics, to complete a going-public transaction
- The company will voluntarily delist from the TSXV’s NEX board before the transaction completes
- The transaction will allow the resulting entity to list on the CSE through Newton Energy, and enter the Canadian market
- Prior to the transaction, Field Trip will complete a private placement of common shares, for maximum proceeds of C$15 million
- Newton Energy (NTN.H) remains unchanged since June 5 and are valued at 18 cents per share
Newton Energy (TSXV:NTN.H) has entered into a letter of intent with Field Trip Psychedelics, to complete a going-public transaction.
Field Trip’s Health centres in North America provide psychedelic therapies, while its drug development division researches plant-based psychedelics.
The going-public transaction will introduce Field Trip to the Canadian market, through Newton Energy.
Newton Energy will voluntarily delist from the TSXV’s NEX board before the transaction completes. The new entity which results from the ensuing transaction will list its common shares on the Canadian Securities Exchange.
Before the transaction takes place, Field Trip plans to complete a brokered private placement of common shares. The company will sell the common shares at C$2.00 each, for gross proceeds of $14 million.
However, there will be an option granted to the agents, to increase the size of the placement by $1 million. This would allow for maximum gross proceeds of $15 million.
After the transaction completes, shares from Field Trip’s placement will be exchanged for common shares in the resulting issuer. During the transaction, each outstanding common share of Newton will be worth $0.25.
The board of directors for the entity resulting from the transaction will have at least five directors, all nominated by Field Trip. The new directors will be put forth and nominated at a meeting of Newton’s shareholders, before the completion of the transaction.
The executive officers of the new company will also be appointed by Field Trip. The executive officers are likely to include Field Trip’s current CEO, Executive Chairman, President of Field Trip Health, President of Field Trip Natural Products, and Chief Clinical Officer.
Newton Energy (NTN.H) remains unchanged since June 5 and are valued at 18 cents per share.