Debra Borchardt
Field Trip Health & Wellness Ltd. (TSX-V: FTHW) (OTC: FTHWF) announced it is closing the Field Trip Health Centres located in Chicago, Washington DC, Seattle, San Diego, and Fredericton in an effort to reduce expenditures and preserve capital. The anticipated last day of operation for each of these locations will be on or around April 15, 2023.
The company said in a press release that clients in each of these locations will be receiving notice of clinic closures which will include, among other things, information on finding alternative care providers, how to access their medical records, and other information required by applicable laws and regulations.
Field Trip reported a few weeks ago that it hired a third-party consultant to review the business and suggest restructuring paths and cost cuts such as breaking leases and shuttering clinic locations, which have cost more money than they make.
Green Market Report wrote that Field Trip posted net revenue of $1.6 million for the quarter, up 23% over the year, though the company’s operating expenses totaled out to $8.1 million. The company wrote in its regulatory filing: “As of December 31, 2022, Field Trip H&W has not yet achieved profitable operations” and has a deficit of $48.7 million since its inception and $17.87 million worth of negative operating cash flows for the nine months leading up to the end of 2022.”
The company wrote at the time that it “expects to incur further losses in the development of its business, all of which creates a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”
Field Trip said that the Independent Committee noted that there could be further cost reductions, restructuring, the potential sublease or closure of clinic locations, and settlement of lease obligations. The company said it does not intend to comment further on the Strategic Review, unless and until the Board has approved a specific course of action or otherwise determined that further disclosure is appropriate or required by law.
