Company Exploring Alternative Value Creation Opportunities
Convertible note for $500,000.00 USD, Short-term Debt Reduced and Balance Sheet Strengthened to Prepare the Company for Long Term Funding Strategy
Annual General Meeting Set for 22 July 2024
VANCOUVER, British Columbia, June 04, 2024--(BUSINESS WIRE)--Lobe Sciences Ltd. (OTCQB: LOBEF) (CSE: LOBE) ("Lobe" or the "Company"), a biopharmaceutical company focused on developing transformative medicines to treat diseases with unmet medical needs and rare diseases announced the evaluation of strategic alternatives to improve shareholder value.
Lobe Sciences has been exploring strategies to enhance shareholder value. Among these are evaluations of alternatives including up-listing opportunities, for example listing on the Australian Securities Exchange for which an Application in Principle was received recently or New York Stock Exchange. In addition to the up-listing opportunities the Company is exploring out-licensing strategies.
Our program is focused on identifying ways to maximize value recognition for our proprietary assets especially L-130 and Altemia. The Company does not believe that the current market valuation fairly reflects the value of the significant scientific achievements that have been accomplished. The Company plans a series of market communications to Stakeholders that highlight the significant scientific achievements in clinical, preclinical and manufacturing.
The Company closed a Convertible Note with two major partners, Clearway Global, LLC and Quality Chemical Laboratories, Inc. to fund $500,000.00 to bridge Lobe Sciences to a larger funding round anticipated toward the end of 2024 or early 2025. The note will be funded in two tranches, the first will be used to eliminate critical accounts payable and the second will be used to fund legal and accounting cost associated with strategic alternatives. The Company has implemented an aggressive program to convert short term debt to long term convertible debt in addition to securing this new Convertible loan thereby improving the balance sheet significantly.
Lobe CEO, Philip Young, commented; "As we review the psychedelic market, it is clear that L-130 is a differentiated compound with a very unique profile not seen in any other product. We will pursue every avenue to ensure our share value is reflective of the potential of our science."
Lobe owns a patent protected analogue of psilocin, the active moiety of psilocybin with demonstrated long term shelf-stability, believed to be a first in the industry. Nonclinical and clinical work in 2023 have defined the significant therapeutic opportunities for L-130, as a daily, non-hallucinogenic therapeutic intervention for the millions that suffer from neurological disorders.
Dr. Fred Sancilio, a Board candidate, and CEO of Clearway Global and is the Head of Lobe’s Clinical Development Programs commented "We look forward to continuing our work with Management refining the strategic direction aimed at creating shareholder value. This alignment will keep the Company focused on what is critical for our growth which must be the creation of value for all stakeholders including investors, management and ultimately patients who will use our drug products."
The Company will provide further updates as we continue to evaluate strategic opportunities. Shareholders are advised that there is no certainty, or guarantee, that alternate listings or other events will occur.
2024 ANNUAL GENERAL MEETING
In support of ordinary business, the Company will conduct an Annual General Meeting on 22 July.
About Lobe Sciences Ltd.
Lobe Sciences is a biopharmaceutical company focused on developing transformative medicines to treat rare diseases. The Company, through collaborations with industry-leading partners, is additionally engaged in drug research and development using non-hallucinatory doses of stabilized psilocin based compounds to address unmet medical needs in orphan neurological therapeutic applications.
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This does not constitute an offer to sell or a solicitation of offers to buy any securities.
Forward Looking Statements
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this news release (including, without limitation, statements regarding the future plans and objectives of the Company, research and development using psychedelic compounds, and the development of innovative devices and delivery mechanisms to improve mental health and wellness) are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that assumptions used in the preparation of the forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including changes to the regulatory environment; that the Company's drug research and development activities may be unsuccessful; that drugs and medical devices produced by, or on behalf of, the Company, may not work in the manner intended or at all, and may subject the Company to product liability or other liability claims; that the Company may not be able to attain the Company's corporate goals and objectives; and other risk factors detailed in the Company's continuous disclosure filings from time to time, as available under the Company's profile at www.sedar.com. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made only as of the date of this news release and the Company does not intend to update any of the included forward-looking statements except as expressly required by applicable Canadian securities laws.
