Mental health provider Stella, which already offers ketamine-assisted therapies for patients, is expanding its U.S. footprint with the acquisition of some of the treatment clinics run by four-year-old psychedelics startup Field Trip Health & Wellness Ltd. (OTC: FTHWF) (TSX-V: FTHW).
Stella announced in a press release that it will acquire the U.S. assets of Field Trip – including facilities in New York and Washington, D.C. – for an undisclosed sum, though Stella noted that the acquisition follows a $7 million fundraising round it recently completed.
“With the acquisition of Field Trip’s assets, we’re offering patients data-backed treatments that align with our industry leading standards,” Philippe Sanchez, CEO of Stella, said in the release. “By combining our collective expertise, we’re excited to pioneer innovative therapies to shape the future of mental health treatment.”
Stella also plans to open a new treatment clinic in Irvine, California, following the recent addition of a clinic in Chicago.
It also is bringing aboard two former Field Trip executives: former president Mujeeb Jafferi and Amardeep Manhas.
“Ketamine protocols are among the most important breakthroughs for mental health, and we’re excited to integrate our years of clinical research and patient outcomes with Stella’s DSR protocol and psychotherapy,” Jafferi said in the release.
The deal will leave Field Trip with ketamine clinics in Toronto and Vancouver, after the company shuttered five of its clinics in April and paid a third-party consultant before that in an attempt to find a financial way to stay afloat.
It’s a far cry from the plans it announced in a Forbes article, in which the Canada-based business said it planned to list on the Nasdaq and have 21 clinics open by the end of 2021.
Field Trip posted a C$28.7 million loss for the three quarters that ended Dec. 31, 2022, its most recent financial filing with the Securities and Exchange Commission, and reported at the time that it had “not yet achieved profitable operations.”