Field Trip Psychedelics Inc. Announces Closing of $11.0 million Financing, Entry into Amalgamation Agreement with Newton Energy Corporation

Both events important milestones to highly anticipated public listing

TORONTO, Aug. 24, 2020 /PRNewswire/ -- Field Trip Psychedelics Inc. ("Field Trip" or the "Company"), the company redefining mental health and well-being through its ground-breaking work in psychedelics and psychedelic-enhanced psychotherapy, today announced it has closed the first tranche of its Series B financing (the "Financing"), raising gross proceeds of $11.0M from a broad base of investors. The Financing was completed through a brokered private placement for which Canaccord Genuity Corp. and Stifel Nicolaus Canada Inc. jointly acted as lead agents.

The proceeds from the Financing will be used to continue Field Trip's rollout of its Field Trip Health centers across North America, which are providing best-in-class psychedelic assisted psychotherapy, and to further advance its pioneering work with its next generation psychedelic molecule, FT-104, and its advanced research and development on psilocybin producing mushrooms in partnership with the University of West Indies.

The Company recently announced the opening of the New York location of its Field Trip Health centers, following the opening of its Toronto location earlier this year, and will shortly be announcing the opening of its Santa Monica location.

Ronan Levy, Executive Chairman of Field Trip Psychedelics, said, "Our ability to secure this private placement validates the strength of our business strategy, brand and the incredible team of physicians, psychologist, therapists, scientists and employees at Field Trip. It is also reflective of the rapidly increasing interest in the investment community in the science of psychedelics compounds and their incredible potential across a number of applications. Securing these funds strengthens our balance sheet and provides us with capital to execute against these growth plans."

Sean Trigony, CEO and Founder of Los Angeles-based Seven Hound Ventures, which participated in the financing, said: "Field Trip's management team has a strong track record of establishing and growing medical clinics, and the science team behind Field Trip Discovery is unparalleled. We are excited to see them applying this experience to the emerging psychedelics industry, building both the infrastructure needed to deliver treatments, as well as the next generation of psychedelic molecules targeting 5HT2A receptors."

Amalgamation Agreement with Newton Energy Corporation

The Company also announced that it has entered into a definitive agreement dated August 21, 2020 (the "Amalgamation Agreement") with Newton Energy Corporation ("Newton") (TSXV: NTN.H) and Newton's wholly-owned subsidiary, Newton Energy Subco Limited ("Newton Subco"), pursuant to which the parties intend to complete a going-public transaction for Field Trip (the "Transaction").

The going-public Transaction is structured as a three-cornered amalgamation, which will result in Field Trip becoming a wholly-owned subsidiary of Newton by amalgamating with Newton Subco, and the security holders of Field Trip becoming security holders of Newton. In connection with the completion of the Transaction, it is intended that Newton will change its name to "Field Trip Health Ltd." (the "Resulting Issuer"). The Amalgamation Agreement will be made available on SEDAR at www.sedar.com.

Field Trip and Newton anticipate the closing of the Transaction (the "Closing") will occur on or about September 29, 2020. The Transaction is subject to the receipt of all necessary regulatory and shareholder approvals as well as the satisfaction of conditions to the Closing as set out in the Amalgamation Agreement.

"As pioneers in developing an entirely new industry in a profoundly transformative therapeutic modality, access to capital will be one of the key characteristics that distinguishes the leaders in the psychedelics industry," added Levy. "Our team has demonstrated great success in raising capital to date, and our public listing will provide us with more diverse financing options that will ensure our continued success and further lower our cost of capital."

About Field Trip Psychedelics Inc.

Field Trip is the world's first mental wellness company at the forefront of the scientific re-emergence of psychedelics and psychedelic-enhanced therapies. With Field Trip Health centres opening across North America and advanced research on plant-based psychedelics through Field Trip Discovery, we help people from those in treatment to those seeking accelerated personal growth, with a simple, evidence-based way to heal and heighten engagement with the world.

Learn more at https://fieldtriphealth.com

Forward Looking Statements

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward- looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstance or management's estimates or opinions change.

SOURCE Field Trip Psychedelics Inc.