Around the Corner

Field Trip Health Ltd.

Healthcare Services
6 January 2021

Tania Gonsalves, CFA | Analyst | Canaccord Genuity Corp. (Canada) | tgonsalves@cgf.com | 1.416.687.6300

Scott McFarland | Associate | Canaccord Genuity Corp. (Canada) | smcfarland@cgf.com | 1.416.687.5437

Canaccord Genuity is providing this report solely for the purpose of investor information, and is not providing a recommendation,
rating, or price target with respect to the securities or the subject companies discussed in this report.

Overview
Based in Toronto, Ontario, Field Trip Health Ltd. (FTRP) is a vertically integrated psychedelic company with
operations spanning drug development and drug delivery. By combining these components of the value
chain, FTRP has the potential to leverage the cash flow and data generated from its health centres to fuel
discovery work and to funnel clinical trials and ultimately commercial delivery of its own psychedelic
therapies into its health center network. FTRP reported revenue of $94,532 in CQ3/20, principally from
ketamine-assisted psychotherapy at its Toronto health center. Although not yet profitable on a gross margin
or EBITDA basis, it is rapidly expanding its clinic network, with a total of seven centres now open or under
construction. FTRP management and directors own ~48% and ~44% of basic and fully diluted shares
outstanding, respectively.

Building a global psychedelic delivery infrastructure Next-generation psychedelic compounds

FTRP is building a global network of health centres to support mass
deployment of psychedelic therapies when and if they are approved
or legalized for the treatment of mental and behavioural health
disorders. The company opened its first clinic in March 2020 in
Toronto. It has since opened three more in New York, Santa Monica
and Chicago and has another three in Atlanta, Houston and
Amsterdam under construction. Management is targeting scaling its
footprint to 75 clinics by 2024. Today, FTRP’s clinics are exclusively
focused on ketamine-assisted psychotherapy (KAP). Racemic
ketamine is legally allowed to be used off-label to treat depression
and anxiety in most jurisdictions. FTRP anticipates expanding its
service offering to psilocybin-assisted psychotherapy in Amsterdam,
where psilocybin truffles are legal, and in Oregon once the
regulatory framework for psilocybin is developed.
There are hundreds of ketamine infusion sites across North America,
with FTRP’s market share immaterial today. However, FTRP is
seeking to differentiate itself from these clinics via a premium full
service offering that includes beautifully designed spaces, access to
psychiatrists, psychologists and psychotherapists, digital support
tools and eventually other psychedelic therapies. The psychedelic
delivery industry as a whole is still in its infancy, with FTRP one of
the first entrants into the space. The rationale behind building its
network now is to establish the brand, train a team of
psychotherapists, and collect as much patient data as possible to
refine and optimize a proprietary protocol in anticipation of broad
scale approval and adoption of psychedelic therapeutics.
Field Trip Discovery was created to identify and isolate new
psychedelic-inspired compounds that may one day be used to
treat patients in the company’s clinics. To achieve this goal,
FTRP is doing two things: (1) developing synthetic new chemical
entities (NCE) targeting serotonin 5HT2A receptors, and (2)
cultivating and researching psychoactive fungi at the University
of West Indies (UWI) in Jamaica.
FTRP’s synthetic drug discovery vertical is focused on next-
generation psychedelics that are patentable, non-addictive and
provide for shorter trips than classical psychedelics, without
compromising potency. The company’s lead drug candidate is
FT-104, a novel 5HT2A-based synthetic psychedelic substance
that is expected to be patentable, is not a controlled substance
and has a shorter duration of activity than classical
psychedelics. FT-104 is currently in preclinical trials that are
expected to complete in CQ3/21.
With respect to plant-based drug development, FTRP has
partnered with the UWI in Jamaica to build a research
laboratory where it can legally cultivate and research
psychoactive fungi without permits or authorization from the
regulatory authorities. Here, FTRP will work to optimize
cultivation, extraction and analytical techniques of psilocybin
mushrooms to prepare for potential legalization in various
jurisdictions as well as to identify and quantify total tryptamine
content in psychoactive fungi to reproduce and/or discover new
drug candidates.

Key Metrics Founding management Headquarters Global locations

Price C$3.56 CEO Joseph del Moral Field Trip Health Ltd. 7 centres
30 Duncan Street, Unit 401 3 countries
Market Cap (M) C$148.1 Exec Chair Ronan Levy
Toronto, Ontario, M5V 2C3 Canada, United States,
Shares Out (bas) (M) 41.6 President Hannan Fleiman +1.833.833.1967 Netherlands
LTM Revenue (M) C$0.1 COO Mujeeb Jafferi
Net debt/(cash) (M) (C$29.8) CCO Dr. Ryan Yermus

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)
The recommendations and opinions expressed in this research report accurately reflect the research analyst’s personal, independent and objective
views about any and all the companies and securities that are the subject of this report discussed herein.

For important information, please see the Important Disclosures beginning on page 18 of this document.

Figure 1: Company logo
Source: Company Reports
FTRP’s first and only revenue-
generating vertical today is its global
network of health centres.
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Company background
Field Trip Health is a vertically integrated psychedelic company with operations
spanning three verticals:
 Field Trip Health Centres: A global network of psychedelic-assisted
psychotherapy and psychedelic-integration psychotherapy clinics;
 Field Trip Digital: Includes ‘Portal’, a digital health platform to support clients
participating in psychedelic therapies at Field Trip Health centres and ‘Trip’, a
mobile application supporting consciousness expansion; and
 Field Trip Discovery: Development of custom synthetic new chemical entities
(NCE) targeting serotonin 5HT2A receptors, and research and cultivation of
psychoactive fungi at the University of West Indies (UWI) in Jamaica.
The company operates under four subsidiaries based on geography: Field Trip
Health (Canada), Field Trip Health USA (US), Field Trip Health B.V. (Netherlands)
and Field Trip Natural Products (FTNP) (Jamaica). Field Trip was incorporated in
April 2019 and went public in October 2020 via a reverse takeover transaction by
Newton Energy Corporation. Its common shares trade on the CSE under the ticker
‘FTRP’. FTRP is based in Toronto and had 43 employees as at October 2020.
Figure 2: Field Trip at a glance
Source: Company Reports
Building a global network of health centres
FTRP’s first and only revenue-generating vertical today is its health centre business.
The company opened its first psychedelic administration clinic in March 2020 in
Toronto. It has since opened three more clinics in the cities of New York, Santa
Monica and Chicago. It has another three in Atlanta, Houston and Amsterdam under
construction, has signed a letter of intent to lease a property in San Diego and is
exploring an expansion into Oregon (Figure 3). Management is targeting scaling its
global footprint to 30 clinics by CQ2/22 and 75 clinics by C2024. The rationale
behind building this network now is to establish the brand, train a team of
psychotherapists and collect as much patient data as possible to refine and optimize
a proprietary protocol in anticipation of broad scale approval and adoption of
psychedelic therapeutics.
2

FTRP spends on average $250,000 to
renovate and open each clinic.
FTRP’s protocol includes six ketamine-
assisted psychotherapy sessions and
three integration therapy sessions.
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Figure 3: Field Trip’s current health centre network
Treatment Monthly patient
Location Size (sqft) Opening date rooms capacity1
Toronto, ON 4,000 Mar-20 6 60
New York, NY 4,500 Aug-20 7 75
Santa Monica, CA 5,200 Sep-20 6 60
Chicago, IL 4,145 Dec-20 6 60
Atlanta, GA 4,453 Jan-21 6 60
Houston, TX 4,600 Jan-21 7 75
Amsterdam 7,158 Mar-21 6 60
Source: Company Reports, Canaccord Genuity estimates
1
Each room has monthly capacity of 10-11 new patients completing a full course of treatment
Meticulously crafted spaces
Upon entering into a lease agreement for a new clinic, FTRP begins renovating the
space. The average cost of this is $250,000 per clinic, which includes leasehold
improvements, furniture and the medical and IT infrastructure. It usually takes
roughly three months before doors can open to the public. Psychedelic experts
emphasize the importance of set (mindset) and setting (environment) in maximizing
the effectiveness of psychedelic therapy. FTRP takes this very seriously when
designing and furnishing its clinics in order to provide a premium experience and the
utmost comfort for patients. Features may include exposed brick walls, mid-century
modern furniture and plenty of indoor greenery.
Ketamine for mental health disorders
Today, the only psychedelic compound legally allowed to be administered to patients
in North America (apart from psilocybin in Oregon) is ketamine. Ketamine is
approved for use as an anesthetic and is commonly used off-label to treat
depression and anxiety. Since ketamine is a Schedule 3 drug in the US, FTRP’s
clinics or the practitioner administering it must be DEA licensed. Ketamine-assisted
psychotherapy (KAP) combines ketamine administration with talk therapy to
accelerate patients’ understanding of their disease and the resultant healing
process. FTRP uses racemic ketamine in lozenge form for oral administration in its
Canadian clinics and in vial form for intramuscular injection in its US clinics.
The Field Trip protocol
FTRP has designed a proprietary KAP protocol that includes a preparatory session
followed by a cycle of two consecutive dosing/exploratory sessions and one
integration session, which FTRP recommends is repeated three times (Figure 4).
This amounts to a total of 10 sessions for a full course of treatment, which takes
most patients three to four weeks to complete. Exploratory therapy is performed
immediately after the ketamine experience to help patients reintegrate into their
body and understand the experience they just had. The integration session is done
independent of ketamine to reflect on the experience after a few days and develop
an action plan to implement lasting behavioural change.
Ketamine administration is usually performed by nurse practitioners while the
therapy sessions involved in KAP are delivered by a mix of psychiatrists and licensed
therapists. In Ontario, registered psychotherapists and members of six regulatory
colleges are authorized to deliver psychotherapy. These groups include
psychologists, social workers, nurse practitioners, occupational therapists and
physicians and surgeons. The majority of services offered at FTRP clinics are
reimbursed via private pay (e.g. out-of-pocket or commercial insurance) with a few
exceptions like screening therapy at the Toronto clinic, which is reimbursed directly
to the administering psychiatrist by OHIP.
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Figure 4: The Field Trip protocol

Source: Company Reports

6 January 2021 4

Laws in some states mandate that
ketamine infusion clinics are owned by
physician practices or professional
medical corporations.
FTRP has designed and launched two
digital platforms (one for during
treatment and one for after) to
complement treatment delivery.
Figure 5: KAP’s effect on depression (n=15)
Source: Company Reports
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Clinic ownership rules and regulations
FTRP owns and operates its Toronto health centre. Conversely, laws in certain states
of the US (i.e., New York, California, Illinois and Texas) have legislation, case law or
policies relating to the Corporate Practice of Medicine (CPOM), which mandates that
ketamine infusion clinics are owned by physician practices or professional medical
corporations (PC). PCs must be majority owned by licensed physicians, with
limitations on non-physician owners to other medical professionals. The rationale for
this is to prevent businesses from unduly influencing physicians in their decision-
making when it comes to patient care.
In these instances, FTRP acts in an administrative capacity, providing non-medical
management services to the PC that owns the clinic (e.g., marketing, information
management, billing and collections). FTRP’s reimbursement model varies by
jurisdiction but may include fixed fees for services rendered, costs plus, a
percentage of the clinic’s revenue or a combination thereof. Since FTRP is deemed
to effectively control the PCs (e.g., leases and renovates the clinic, owns the brand
and employs all non-clinician office administrators), 100% of US clinics’ revenue is
consolidated into FTRP’s financials.
Field Trip Digital
FTRP has designed and launched two digital platforms to complement its network of
health centres and complete the treatment delivery ecosystem. Below we describe
both platforms and their respective functions.
Field Trip Portal: A teletherapy tool intended to be used during treatment by:
 The patient for mood monitoring, mindfulness tools, content, information,
guided meditations and synchronous and asynchronous communication; and
 The provider for data collection via a dashboard that tracks scheduled sessions,
daily moods, goals, tasks and perceived results.
Data from Portal suggests that FTRP’s KAP protocol is highly effective at reducing
depression and anxiety (Figure 5-6). FTRP also recently announced a partnership
with WHOOP, wherein it will conduct an observational study to assess KAP’s impact
on several biometric measures like heart rate variability, resting heart rate and
overall sleep quality as measured by the WHOOP Strap 3.0. Future iterations of
Portal will likely be made available to third-party therapists and ketamine infusion
centres to support their patients, drive referrals to FTRP health centres for any
service that the third-party therapist or infusion centre does not provide and,
ultimately, to allow FTRP to collect more patient data.
Figure 6: KAP’s effect on anxiety (n=15)
Source: Company Reports
Trip App: A mobile software application that supports self-guided therapy outside
the clinic (Figure 7). The app is designed for post-treatment use by FTRP patients as
well as for non-patients looking to self-therapize at home. It includes features like
5

Figure 7: iPhone screenshots of Trip App
Source: Apple Store Preview
FT-104 is a psychedelic NCE targeting
5HT2A receptors that is expected to be
patentable, is not a controlled
substance and has a shorter duration
of activity than classical psychedelics.
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mood tracking, ambient soundtracks tailored to the user’s intention (i.e., discovery,
growth, healing, processing, transformation), guided journaling, voice recording and
curated content to promote mindfulness. FTRP has made Trip available free of
charge to users on Apple and Android platforms in an effort to expand its audience
and attract new patients to its health centres. The company will continue to build
content on the app and expects to launch a premium paid version in CH2/21.
Field Trip Discovery
Field Trip Discovery was created to identify and isolate new psychedelic-inspired
compounds that may one day be used to treat patients in the company’s clinics. To
achieve this goal, FTRP is doing two things: (1) working to discover synthetic NCEs
targeting serotonin 5HT2A receptors (linked to mood disorders) that are patentable,
non-addictive and provide for shorter trips and robust potency at low doses; and (2)
working with UWI in Jamaica to identify and characterise the psychoactive
molecules contained within psilocybin mushrooms, botanicals and other related
fungi. Below, we describe in greater detail these two branches of R&D.
Synthetic drug development
FTRP’s lead drug candidate is a molecule called FT-104, which it discovered in the
spring of 2020. FT-104 is a novel 5HT2A-based synthetic psychedelic substance. A
key shortcoming of classical psychedelics is their long time to onset and long
duration of activity. For instance, the highs created by MDMA, psilocybin and LSD
last six, seven to eight and over 10 hours, respectively. Conversely, in-vitro and in-
vivo rat studies of FT-104 demonstrate fast absorption (89% bioavailability at one
hour) and a shorter duration (two to four hours). This is without sacrificing potency,
with FT-104's binding constant for the 5HT2A receptor similar to that of psilocybin.
Unlike many classical psychedelics, FTRP has received legal advice suggesting FT-
104 is patentable. The company filed a provisional patent with the USPTO in June
2020 covering composition of matter, formulation, routes of administration and
methods of use in treating a variety of central nervous system (CNS) disorders. It
intends to file a utility patent before the provisional one lapses in June 2021. As a
6

Figure 8: FT-104 forecast development timeline
Source: Company Reports
FTRP anticipates utilizing the
techniques it develops at the Jamaica
facility in its Amsterdam clinic and the
State of Oregon.
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novel psychedelic compound, FT-104 is also not a controlled substance. This means
manufacturing and research is not as heavily regulated, making it easier for FTRP to
find partners with this expertise. The company is working with a contract
manufacturing organization (CMO) that is Health Canada approved, FDA registered
and GMP-compliant. It has also identified a global contract research organization
(CRO) with a specialty in CNS diseases that is GLP-compliant and has the
capabilities to perform all of FT-104’s preclinical and Phase 1 studies.
FT-104 is currently in preclinical trials, which are expected to complete in CQ3/21
(Figure 8). FT-104 is projected to enter Phase 1 trials before C2021 year-end.
Although the trial design has not been finalized, FTRP anticipates enrolling healthy
male volunteers who have prior experience with psychoactive substances. Phase 1
studies are projected to cost just over $2.0M and to complete by CQ1/22.
Plant-based drug development
In April 2020, FTRP entered into a research agreement with UWI at Mona, Jamaica
to research and cultivate psychoactive fungi. Since these fungi are not illegal in
Jamaica, FTRP does not require permits or authorization from the regulatory
authorities to conduct its research. Moreover, the company performs its research
exclusively in the laboratory and clinical setting. It has leased property on the
campus for a 2,072-sqft standalone research laboratory (Jamaica Facility).
Construction is substantially complete with the facility slated to open this month.
The purpose of the Jamaica facility is to optimize cultivation, extraction and
analytical techniques of psilocybin mushrooms in order to prepare for potential
legalization in various jurisdictions. For instance, FTRP anticipates utilizing the
techniques it develops in Jamaica at its Amsterdam clinic, where psilocybin truffles
are legal, as well as in the State of Oregon once the regulatory framework is
developed. FTRP is also working to identify and quantify total tryptamine content,
including that of psilocybin, in psychoactive fungi in order to reproduce and/or
discover new drug candidates. To date, FTRP has already successfully cultivated 24
varieties of psilocybin-producing fungi and truffles from 13 different species.
Financial terms of the partnership with UWI include an initial investment of up to
US$1.0M by FTRP to construct the facility ($0.4M spent to date) and a contribution
of US$0.1M to fund student development initiatives over three years. UWI will
provide personnel selected by FTRP to assist in research. All labour, equipment and
supply expenses will be borne by FTRP at cost plus 15%. FTRP owns all equipment
and IP related to the facility and will pay UWI a 2% royalty on net sales of any
product developed in the facility that is ultimately commercialized. The local team
comprises Dr. Rupi Delgoda, who is a senior researcher and professor at UWI,
business consultants, legal counsel and local post-doctoral research students.
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Industry landscape
Overview of ketamine
Ketamine, although non-hallucinogenic, is classified as a psychedelic given its
dissociative characteristics. It is one of the few drugs that was able to dodge harsh
scheduling in the UN’s Convention on Psychotropic Substances and the US
Controlled Substances Act. This was thanks to pre-existing medical evidence that
had established ketamine’s efficacy as a potent but safe anesthetic. Chemically
synthesized, ketamine has a structure similar to that of the hallucinogen
phencyclidine (PCP). It was discovered shortly after PCP, while seeking an
alternative anesthetic that lacked PCP’s prolonged states of delirium. Ketamine
blocks the NMDA receptor, which causes its anesthetic and dissociative effects, like
derealization and depersonalization.

Ketamine has strong, fast-acting and
lasting effects on depression.
In 2000, researchers found that ketamine has strong, fast-acting and lasting effects
on depression. This is thought to arise from downstream mechanisms like increases
to structural synaptic connectivity. Based on the abundance of supporting evidence,
physicians began to prescribe ketamine off-label at low doses to treat depression.
So long as administration is performed under medical supervision at a DEA-licensed
clinic and/or by a DEA-licensed medical professional, this practice is legal.
In March 2019, Johnson & Johnson’s (NYSE-JNJ | Not Rated) esketamine nasal
spray (Spravato) became the first form of ketamine to be approved by the FDA for
treatment-resistant depression (TRD). However, Spravato has yet to steal material
market share from off-label usage of racemic ketamine given its exorbitant cost
(US$600-US$1,000 versus <US$10 cost of drug per infusion). There are several
clinical trials currently underway seeking to win approval of ketamine for related
mental health conditions like suicidality, anxiety, bipolar disorder and PTSD. For
now, we focus on depression as it is the only approved mental health indication.

Major depressive disorder (MDD)

The World Health Organization (WHO)
ranks MDD as the single largest
contributor to global disability.
Depressive disorders are subdivided into two classes: dysthymia and MDD.
Dysthymia, while less severe, is a chronic and persistent form of depression that
lasts for at least two years. MDD is a serious recurrent disease, with patients cycling
through periods of remission and relapse over the course of their life. The World
Health Organization (WHO) ranks MDD as the single largest contributor to global
disability. In its Global Burden of Disease 2017 study, the Institute for Health
Metrics and Evaluation estimated that there are 264.0M people worldwide (3.4%
prevalence) living with depressive disorders (Figure 9). Patients with MDD,
represent just over 60% of this group (2.2% prevalence).

Figure 9: Global prevalence of depressive disorders (Ms)

300.0

250.0

200.0

150.0

100.0

50.0

0.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

MDD Dysthymia

Source: Institute for Health Metrics and Evaluation

6 January 2021 8

IQVIA estimates that global sales of
drugs indicated for MDD were US$9.6B
in C2020.
Based on the results of the STAR*D
study, over 70.0M individuals globally
have TRD.
Figure 10: STAR*D study results
Source: TMS Institute of America
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Pharmacotherapy, the first-line standard of care
The first-line standard of care for MDD includes a course of antidepressant
medication, usually accompanied by psychotherapy, cognitive behavioural therapy
or interpersonal psychotherapy. The most commonly prescribed class of
antidepressant is selective serotonin reuptake inhibitors (SSRI), like sertraline
(Zoloft), citalopram (Celexa) and fluoxetine (Prozac). SSRIs block or inhibit the
reuptake of serotonin to promote proper signalling in the brain. IQVIA estimates
that global sales of drugs indicated for MDD were US$9.6B in C2020.
Clinical study brings to light the challenges of drug therapy
The efficacy and side effect profile of antidepressants vary by patient. Physicians
must typically experiment with different drugs or graduate the patient to
combination therapy to find the right balance of positive and negative effects. In
2006, NIMH published the results of its STAR*D study, the goal of which was to
quantify the effectiveness of antidepressants in treating MDD. Over a period of
seven years, STAR*D enrolled 4,041 Americans aged 18-75. The results brought to
light the limited efficacy of drug therapy, which worsened upon each successive
treatment attempt (Figure 10). Moreover, side effects like blurred vision, anxiety,
weight gain, constipation, nausea and insomnia, among others, were sufficient to
cause patient discontinuation to rise to over 41% in the fourth round of treatment.
Based on the results of the STAR*D study, ~48% of patients with MDD (or over
70.0M individuals globally) will fail to achieve remission following three rounds of
pharmacotherapy. Approved courses of action for these TRD patients include
electroconvulsive therapy, transcranial magnetic stimulation and esketamine.
Legal and regulatory landscape for psychedelics
FTRP plans to expand its protocols to psychedelic-assisted psychotherapies beyond
KAP as new drugs win FDA (or equivalent) approval and/or become legal. Clinical
trials are currently underway evaluating psilocybin, MDMA, LSD and other
psychedelic substances for the treatment of a myriad of conditions such as
depression, generalized anxiety, OCD, PTSD, addiction and eating disorders. If
approved, there will be a process wherein the sponsor can apply to have the drug
rescheduled based on the now proven medical use.
Outside of clinical development for medical purposes, there has also been a
widespread grassroots movement across the US to decriminalize psychedelic drugs.
Over the past two years, the cities of Denver, Oakland, Santa Cruz and Ann Arbor
and the District of Columbia have all decriminalized the cultivation, possession,
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distribution and/or use of select or all plants and fungi containing psychedelic
compounds (e.g., psilocybin mushrooms, ayahuasca, peyote, ibogaine). Oregon has
taken it one step further, in November 2020, becoming the first state in the US to
decriminalize the possession of all illegal drugs and to legalize the use of psilocybin
for mental health treatment of individuals 21 years of age or older. Over the next
two years, the Oregon Health Authority will work to create a program to regulate
psilocybin mushroom cultivation and the delivery of psilocybin-assisted therapy.

Psychedelic-assisted psychotherapy providers

Thanks to the surge of interest in psychedelics and advancements on both the
clinical and legal front, FTRP is not the only company looking to build a delivery
infrastructure. While there are hundreds of ketamine infusion clinics across North
America, we choose to highlight solely the broad psychedelic players (Figure 11).

Figure 11: Psychedelic providers competitive landscape

Company Listing Description
AWAKN is a UK-based company with divisions spanning drug development, clinic operations and
therapist training. The company's first clinic in Bristol is slated to open in January 2021, with an
private
initial focus on KAP. Future development plans include clinics in London and Manchester later in
2021 and Birmingham and Brighton in 2022.
Champignon owns the Canadian Rapid Treatment Centre of Excellence (CRTCE). Based in
SHRM- Mississauga, Ontario, the CRTCE is Canada’s first multidisciplinary community clinic offering rapid-
CSE onset treatments for depression. This includes off-label intravenous ketamine and Health Canada
approved intranasal esketamine for TRD.
In December 2020, Eleusis announced the acquisition of Kalypso Wellness Centers. Kalypso
manages seven ketamine infusion clinics (six in Texas, one in New York) and has delivered infusions
private
to over 10,000 patients to date. Post-merger, Eleusis plans to leverage Kalypso's drug infusion
expertise with its own scientific and clinical capabilities.

Operates a meticulously designed clinic in Manhattan with plans to expand to locations in San
private Francisco, Los Angeles, San Diego and Austin. Mindbloom partners with licensed psychiatric
clinicians in order to help their patients access KAP for depression or anxiety.

Novamind provides KAP and other treatments through its network of four Cedar Psychiatry clinics
near Salt Lake City, Utah. It is a leader in the space, having administered over 3,000 KAP sessions
private
and over 700 esketamine treatments to date. It is also building a network of psychedelic retreats
through strategic investments in Synthesis (Netherlands) and the Circadia Center (Costa Rica).
Numinus is renovateing its Vancouver clinic to administer clinical trials, train therapists and develop
NUMI- protocols for the delivery of KAP and other psychedelic therapies. In December 2020, Numinus
TSXV announced the acquisition of Mindspace Wellbeing. Mindspace has three clinics in Montreal, Quebec
that deliver KAP and related virtual services to over 1,400 patients.
Silo Wellness operates a psilocybin retreat and cultivates mushrooms and truffles in Jamaica.
Following the legalization of psilocybin in Oregon in November 2020, Silo unveiled plans to open a
private
wellness retreat in Oregon. This retreat will focus on KAP within nature initially but has the potential
to expand to psilocybin-assisted psychotherapy once the state's legal infrastructure is ready.
Synthesis offers a range of medically-supervised psilocybin truffle experiences via a network of four
retreat centres in the Netherlands. Venues include country houses, renovated farmhouses and
private
nature sanctuaries. Synthesis is also partnered with the Psychedelic Research Group of Imperial
College London to provide safe and legal psilocybin truffle experiences.
Through Clear Sky Recovery, Universal Ibogaine operates clinics in Cancun, Mexico and Nassau,
Bahamas and recently acquired the Kelburn Mental Health & Addiction Recovery Centre near
private
Winnipeg, Manitoba. It has plans to build 14 clinics by 2025, offering ibogaine for the treatment of
addiction where legally permissable.
WAKE operates a mountain retreat, private beach and pavilion in Jamaica where it uses psilocybin
mushrooms as part of a guided program to treat depression, anxiety, PTSD, addiction and more. It
private
recently expanded this offering to Santa Cruz, California and has plans to open clinics in British
Virgin Islands, the Netherlands, Brazil and Denver, Colorado.
Source: Various company reports and websites, Canaccord Genuity

6 January 2021 10

FTRP has the potential to generate
$3.4M in annual revenue per clinic at
full capacity.
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Financial overview
A breakdown of patient services revenue
Today, FTRP’s sole source of revenue is generated from KAP and related services
provided at its clinics. The company charges $4,700 for a full course of treatment
(same in all currencies) made up of the following amounts:
 $300 for the initial screening session, which is performed by a psychiatrist;
 $200 for the intake session and each of the nine subsequent psychotherapy
sessions, which are performed by a psychotherapist; and
 $400 for each of the six ketamine administration sessions, which are usually
performed by a nurse practitioner.
Each of FTRP’s centres is designed with, on average, six treatment rooms. FTRP
estimates that every room is able to deliver a full course of treatment to on average
10 new patients per month (Figure 3). Based on this patient capacity, FTRP has the
potential to generate $3.4M in annual revenue per clinic or over $30.0M (adjusted
for FX) in total revenue across its current network of seven clinics. FTRP started
earning revenue in March 2020 upon the opening of its Toronto health centre. To
date, it has reported $23,359 in sales in FQ1/21 (quarter ending June 30, 2020) and
$94,532 in FQ2/21 (quarter ending September 30, 2020) (Figure 12). New patient
starts have been driven roughly equally by word of mouth and FTRP’s digital and
social media advertisements; however, volumes have been constrained this year
due to COVID-19-related measures.
Figure 12: FTRP revenue since inception (000s)
120.0
Toronto clinic NY clinic opens
opens March 4th August 1st
100.0
80.0
60.0
40.0
20.0
1.0 23.6 94.5
-
FQ4/20A FQ1/21A FQ2/21A
Source: Company Reports
Flexible plans and payment timelines
Since ketamine usually requires four to six administrations to be efficacious, FTRP
encourages patients to complete the entire KAP protocol. However, this is not
mandatory. Individuals with demanding work schedules may need to stretch out
their plan past the typical four-week timeframe to balance other commitments.
Some patients may have already had several rounds of ketamine infusions at
another clinic and are only looking to do integration therapy through FTRP. Others
may have a therapist they are loyal to, in which case FTRP can work with that
therapist to create a plan wherein it only provides ketamine administration. Given
these varying circumstances, FTRP offers flexible payment models allowing patients
to pay for sessions as needed and/or as they go.
Virtual platforms not yet being monetized
Upon completion of a full course of treatment, FTRP has witnessed the large
majority of patients want to continue working with them. This may include coming
11

At full capacity, FTRP expects to
generate average adjusted EBITDA of
$1.0M per clinic.
The company has emerged following
the January 2021 bought deal offering
with $29.8M in available funds.
Management and directors own ~48%
of basic and ~44% of fully diluted
shares outstanding.
6 January 2021
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in for psychotherapy on its own, KAP booster cycles every few months or continued
support via the Trip app. For now, FTRP has made Trip available free of charge to
users on Apple and Android platforms. As it builds out content on the app, FTRP
intends to release a premium version and start monetizing the platform in CH2/21.
Given the limited labour and occupancy costs associated with virtual services, FTRP
expects the operating margin on this line of revenue to be meaningfully higher than
in-person patient services.
Operating expenses still outweigh revenue
Since FTRP uses racemic ketamine in its protocol, the cost of the drug is minimal
(e.g., a couple dollars per dose). This makes the ketamine dosing sessions the
highest-margin service today. The majority of direct expenses incurred at the clinic
level (patient services line item) are made up of labour costs, like salaries and
hourly fees paid to psychiatrists, psychotherapists, nurse practitioners and non-
clinician staff. FTRP projects each clinic will take on average 7-12 months to turn
FCF positive and 13-20 months to pay back the ~$250,000 construction costs plus
initial monthly losses (varies by geography). At full capacity, FTRP anticipates
generating average adjusted EBITDA of roughly $1.0M per clinic.
On a corporate level, it pays ~$500 per patient in customer acquisition costs and
incurs significant G&A and R&D expenses. As such, the company is yet to turn a
profit (Figure 13). As clinic revenue grows, however, we expect FTRP to benefit from
operating leverage.
Figure 13: FTRP financial results
Line item FH1/21 results ($000s)
Revenue 118
Patient services 289
G&A (ex-SBC) 3,085
Occupancy costs 176
Sales and marketing 420
Research and development 1,481
Adjusted EBITDA (5,333)
Source: Company Reports
Balance sheet and historic financings
Figure 14 highlights FTRP’s history of equity raises. The company has emerged
following the January 2021 bought deal offering with $29.8M in available funds
($18.8M net proceeds of offering plus $11.0M in prior working capital). Debt
amounts to a modest $40,000 interest-free loan from Canada Emergency Business
Account (CEBA), which was extended as part of Canada’s COVID-19 pandemic relief
package. As long as FTRP repays this loan before the end of C2022, it is expected
that $10,000 will be forgiven.
Including the 4.4M units (one common share + one half warrant) issues as part of
the January 2021 offering, FTRP currently has 41.6M class A common shares
outstanding. We estimate the fully diluted share count, including all options and
warrants outstanding, to be 47.8M. There are also 0.6M milestone common shares
issuable in relation to FTRP’s acquisition of its previously unowned interest in the
Jamaica business. This includes 150,000 shares issuable in June 2021 and 450,000
shares issuable on a prorated quarterly basis over the three years following.
Management and directors own ~48% of basic and ~44% of fully diluted shares
outstanding.
12
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Figure 14: FTRP’s historic equity financings

Shares/units Issue Proceeds

Date Details issued (Ms) price (Ms)
Apr-19 Founders' round 6.3 $0.06 $0.3
Oct-19 Founders option exercise 2.7 $0.00 $0.0
Oct-19 Advisors' round 2.5 $0.50 $1.3
Feb-20 Series A (1st tranche) 9.4 US$0.90 $11.2
May-20 Series A (2nd tranche) 0.1 US$0.90 $0.1
Aug-20 Founders option exercise 9.0 $0.00 $0.0
Aug-20 Series B (1st tranche) 5.5 $2.00 $11.0
Aug-20 Series B agent compensation 0.1 $2.00 n.a.
Sep-20 Series B (2nd tranche) 0.8 $2.00 $1.6
Sep-20 FTNP milestone payment 0.6 $2.00 n.a.
Nov-20 Stock option exercise 0.1 $1.84 $0.1
Dec-20 Stock option exercise 0.1 $0.73 $0.1
Jan-21 Bought deal offering 4.4 $4.50 $20.0
TOTAL COMMON SHARES O/S 41.6 $45.8
Source: Company Reports

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Appendix A: Management and directors

Joseph del Moral, Founder, Chief Executive Officer and Director
Mr. del Moral was a founder and the CEO of CanvasRx and Canadian Cannabis
Clinics. When Aurora Cannabis Inc. (ACB-TSX: C$12.24 | HOLD by Matt Bottomley;
C$11.00 target) acquired CanvasRx Inc. in 2016, he joined Aurora’s board of
directors and, along with his partners, helped lead Aurora’s M&A and corporate
development efforts. Following his time at Aurora, Mr. del Moral became CEO of
Trait Biosciences Inc., a leading cannabis biotechnology company. Prior to working
in cannabis he co-founded Newten Home Comfort, a fast-growing home services
company, which was acquired by Just Energy Inc. (JE-TSX | Not Rated).

Ronan Levy, Founder, Executive Chairman and Director

Mr. Levy is also a partner at Grassfed Ventures, a venture capital and advisory firm
focused on the cannabis and biotech industries, and Chief Strategy Officer and
Member of the Board of Directors for Trait Biosciences Inc. Prior to his current roles,
Mr. Levy co-founded Canadian Cannabis Clinics and CanvasRx Inc., the latter of
which was acquired by Aurora Cannabis Inc. in 2016, after which he served as
Senior Vice President, Business and Corporate Affairs for Aurora. Mr. Levy started
his career as a corporate lawyer at Blake, Cassels Graydon LLP and Legal Counsel at
CTVglobemedia Inc., now Bell Media Inc. (BCE-TSX: C$55.87 | HOLD by Aravinda
Galappatthige; C$58.00 target). He holds a Juris Doctor and a Bachelor of
Commerce degree, both from the University of Toronto.

Hannan Fleiman, Founder, President and Director

Mr. Fleiman is also a founder of Grassfed Ventures, CanvasRx, and Canadian
Cannabis Clinics. He previously served as President of Trait Biosciences, VP
Operations at Just Energy and Sr. Business Manager of Teva Pharmaceuticals
(TEVA-NYSE | Not Rated) where he managed the Hospital, Animal and OTC
markets. Mr. Fleiman holds an MBA from McMaster University and a Medical
Toxicology B.Sc. from the University of Guelph.

Mujeeb Jafferi, Founder, Chief Operating Officer and Director

Mr. Jafferi most recently served as Vice President of Sales Strategy and Operations
at Just Energy Inc. and President of its Solar Energy division. He has held senior
leadership roles in areas of corporate finance, operations, strategy and business
development at Just Energy and SunEdison Inc. He serves as an adviser to
Aptitude360, an innovative customer acquisition and communication start-up based
out of Toronto. Mr. Jafferi received his bachelor’s degree in Information Technology
Management from York University and a Global Professional Master of Laws from
Faculty of Law at the University of Toronto.

Ryan Yermus, Founder, Chief Clinical Officer and Director

Dr. Yermus graduated medical school from the University of Ottawa and completed
his residency at the University of Toronto in 2009. Prior to Field Trip Ventures, Dr.
Yermus founded the first fully compliant medical cannabis clinic in Canada. His
current practice takes on the opioid epidemic as he works with patients to overcome
this addiction.

Nathan Bryson, Founder and Chief Science Officer

Dr. Bryson joined Field Trip as head of FT Discovery after serving as Chief Scientific
Officer at Cynapsus Therapeutics and Acerus Pharmaceuticals (ASP-TSX | Not
Rated). He brings more than 25 years of experience in various aspects of
pharmaceutical development from early-stage drug delivery design and
development through to regulatory affairs for market approval and medical affairs
support for sales. Dr. Bryson holds a BSc in Chemistry from Auburn University and a
PhD in Radiopharmaceutical Chemistry from the Massachusetts Institute of
Technology.

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Donna Wong, Chief Financial Officer

Ms. Wong has over 20 years of experience within private start-ups and public multi-
national organizations, primarily in the technology sector. She has a proven track
record in establishing the necessary corporate infrastructure to scale through
change management, IT, and cross-functional collaboration among multi-location
businesses. Prior to her current role as VP, Finance of ViXS Systems, Ms. Wong
guided the company from pre-revenue to $100.0M in revenue and eventual listing
on the TSX. Ms. Wong is a CPA, CA, CMA and holds a Master of Accounting and
Honours Bachelor of Arts degrees from the University of Waterloo.

Amardeep Manhas, Chief Technical Officer

Mr. Manhas is a seasoned business technology and operations executive with 15
years of experience across a variety of industries. Most recently, he served as VP
Operations at Crius Energy, overseeing the buildout of a proprietary multi-party
software platform and the back-office support organization for Crius’s solar division.
Prior to Crius, he oversaw technology and operations at the cleantech start-up
LightWing, Inc, which was fully acquired by SunEdison in 2015. Mr. Manhas also
held several senior roles at the energy retailer Just Energy prior to 2014, where he
oversaw both large business and technology organizations. Mr. Manhas holds a
Bachelor of Applied Science in Engineering Physics from Queen’s University.

Paula Amy Hewitt, Vice President & General Counsel

A lawyer by training, Ms. Hewitt has broad experience gained through a career in
private practice at law firms, and in executive roles within Canadian and
Multinational financial services companies. In addition to her Juris Doctor, Ms.
Hewitt holds a BA in Psychology from McGill University, a Graduate Certificate in
Risk Management from the University of Toronto and the CIPP/C, CIPM and CIPT
designations. She is also a Certified Life Coach.

Dieter Weinand, Director

Mr. Weinand is the former President, CEO and Chairman of the Board of Bayer
Pharmaceuticals AG (BAYN-XTRA | Not Rated) and has 30 years of experience in
senior executive roles with a number of pharmaceutical companies, including Sanofi
(SAN-ENXTPA | Not Rated), Otsuka (4578-TSE | Not Rated) and Pfizer (PFE-NYSE |
Not Rated). He has a demonstrated ability to recognize opportunity, create a vision
and strategy, and mobilize organizations behind successful execution. Mr. Weinand
has launched and marketed some of the industry’s most successful products,
including Lipitor, Neurontin, Abilify and Cipro.

Helen Boudreau, Director

Ms. Boudreau joins the company’s Board of Directors after most recently serving as
Chief Operating Officer for the Bill & Melinda Gates Medical Research Institute. Prior
to that role, Ms. Boudreau served as CFO for biotech companies Proteostasis
Therapeutics and FORMA Therapeutics (FMTX-NASDAQ | Not Rated). Previously, Ms.
Boudreau spent 16 years at Novartis (NOVN-SWX | Not Rated) and Pfizer, serving in
strategy and senior finance roles, including Global CFO, Oncology business unit, CFO
US Corporate, VP Investor Relations, VP Finance, Customer Business Unit and
Commercial Operations, and VP Finance Global R&D. She has contributed to
successful product launches, driven sales growth and increased profitability,
integrated mergers & acquisitions, and provided leadership across Finance, IT, HR,
Strategic Sourcing, Facilities, and Innovation, Quality and Process improvement.

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Appendix B: Advisory board

Andrew Weil, Advisor
Dr. Weil is a world-renowned leader and pioneer in the field of integrative medicine.
Combining a Harvard education and a lifetime of practicing natural and preventive
medicine, Dr. Weil is the founder and director of the Andrew Weil Center for
Integrative Medicine at the University of Arizona in Tucson, where he also serves as
a Clinical Professor of Medicine and Professor of Public Health as well as the Lovell-
Jones Professor of Integrative Medicine. He is a best-selling author of 15 books on
healthy living. Oxford University Press is currently producing the Weil Integrative
Medicine Library, a 16-volume series for clinicians in various medical specialties. Dr.
Weil is the editorial director of drweil.com, the leading online resource for healthy
living based on the philosophy of integrative medicine, and pens Dr. Andrew Weil’s
Self Healing monthly newsletter and a column in Prevention magazine. Dr. Weil is
the founder/Chairman of the Weil Foundation, the founder/co-Chairman of Healthy
Lifestyle Brands, and a founder/partner of True Food Kitchen restaurants. In 2017,
he joined Seabourn and The Onboard Spa by Steiner in their “Spa and Wellness with
Dr. Andrew Weil” mindful-living program on its cruise ships.

Michael Ehlers, Advisor

Dr. Ehlers has more than 20 years of experience in biopharmaceutical leadership
and biomedical research. Currently CEO of Limelight Bio and CSO of Apple Tree
Partners, Dr. Ehlers was previously Executive Vice President and Head of Research &
Development at Biogen (BIIB-NASDAQ: US$246.39 | BUY by Sumant Kulkarni;
US$359.00 target). Prior to that, Dr. Ehlers was Senior Vice President of
BioTherapeutics R&D and the Chief Scientific Officer for Neuroscience & Pain at
Pfizer. He holds a BS in chemistry from the California Institute of Technology, and
M.D. and Ph.D. degrees from the Johns Hopkins University School of Medicine.

Sidney Kennedy, Advisor

Dr. Kennedy is Professor of Psychiatry at the University of Toronto, the Arthur
Sommer Rotenberg Chair in Suicide and Depression Studies, and a Scientist at Li Ka
Shing Knowledge Institute and Toronto Western Research Institute, Toronto,
Canada. Dr. Kennedy is the lead investigator for a large depression biomarker
initiative. He has published extensively on new drug evaluation, neuroimaging and
neurostimulation therapies, personality factors in depression, antidepressant effects
on sexual function and treatment guidelines for Major Depressive Disorder and
Bipolar Disorder. Dr. Kennedy is the Immediate Past President of the International
Society for Affective Disorders, former President of the Canadian College of
Neuropsychopharmacology, and the founding chair of the Canadian Network for
Mood and Anxiety Treatments (CANMAT). He has published more than 350 peer
reviewed publications and 11 books on depression and related topics.

John Hanlon, Advisor

Dr. Hanlon is the founding Program Director for the University of Toronto Pain
Medicine Residency. He is an Assistant Professor in the Department of Anesthesia
and practices Anesthesia and Pain Medicine at St. Michael’s Hospital where he is
Medical Director of the Chronic Pain Clinic. Dr. Hanlon is the founding Program
Director for the University of Toronto Pain Medicine Residency. He is an Assistant
Professor in the Department of Anesthesia and practices Anesthesia and Pain
Medicine at St. Michael’s Hospital where he is Medical Director of the Chronic Pain
Clinic.

Barry Waisglass, Advisor

Dr. Waisglass has been working in the Canadian medical cannabis industry,
influencing physicians, researchers, and regulatory authorities, both domestically
and abroad. In 2014 he became the seminal physician and medical director of
Canadian Cannabis Clinics. Soon after the company’s acquisition by Aurora Cannabis

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in 2016, he became its medical director. Prior to his service in the cannabis space
he was a family doctor for almost 40 years.

Robert McMaster, Advisor

Dr. McMaster is a Forensic Psychiatrist with a diverse practice. He works at CAMH
with patients who have severe and persistent mental health diagnoses. He is also
the primary consulting psychiatrist to the Ontario Court of Justice on Finch Avenue,
is actively involved in outreach psychiatry, and works within the field of addiction
medicine. He completed his subspecialty training at the University of Toronto and is
now a faculty member.

Sanjay Singhal, Advisor

Mr. Singhal is a Canadian Partner for 500 Startups Canada and the founder of
Audiobooks.com. He is president of the Aquanta Group, a long-term inventor,
entrepreneur, VC and angel investor. Mr. Singhal assists start-ups and
entrepreneurs achieve success by investing in them and using his own experiences
to reduce risk and commonly made mistakes. Mr. Singhal has an Undergraduate and
Masters Degree in Electrical Engineering from the University of New Brunswick and
the University of British Columbia as well as an MBA from Cornell University.

Wes Hall, Advisor

Mr. Hall serves as Executive Chairman of the KSS Group of Companies, and founder
and former CEO of Kingsdale Advisors. The Globe & Mail has called him one of the
nation’s “most influential powerbrokers” and Canadian Business magazine named
him one of the “most powerful business people” in 2016. Mr. Hall has been the
recipient of numerous awards and honors over the years, and currently serves as a
director of SickKids Foundation, a board member of Pathways to Education and
Toronto International Film Festival (TIFF) and was former Chairman of the Board of
Difference Capital Financial.

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Appendix: Important Disclosures

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Investment Recommendation
Date and time of first dissemination: January 06, 2021, 04:30 ET
Date and time of production: January 05, 2021, 21:07 ET

Distribution of Ratings:
Global Stock Ratings (as of 01/06/21)
Rating Coverage Universe IB Clients
# % %
Buy 559 62.32% 59.21%
Hold 175 19.51% 40.00%
Sell 10 1.11% 30.00%
Speculative Buy 134 14.94% 79.85%
897* 100.0%
*Total includes stocks that are Under Review

Canaccord Genuity Ratings System

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HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.
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6 January 2021 19
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