Star Metro - Lobe Sciences Reports First Quarter 2026 Results and Highlights

"During the first quarter of fiscal 2026, Lobe meaningfully accelerated its research and development activities, with R&D expenditures increasing to just under $1 million as we advanced our core programs through Cynaptec Pharmaceuticals, Inc.," said Dr. Fred Sancilio, CEO of Lobe Sciences Ltd. "This progress reflects our transformative approach to drug development of next-generation serotonergic agents, combining our advanced pharmaceutical development expertise, focused subsidiary-level execution with centralized scientific and regulatory core competencies. Importantly, this increased level of activity was achieved alongside improved operating efficiency, underscoring the benefits of our shared services model. We believe this disciplined and scalable approach positions the Company to continue advancing development initiatives while maintaining a strong financial foundation".

First Quarter 2026 Financial Highlights

• Cash totaled $5,991,614 as of November 30, 2025.

• Short-term investments totaled $1,025,098 as of November 30, 2025.

• Net working capital totaled $4,047,891 as of November 30, 2025.

• Research and development expenses totaled $982,087 for the quarter ended November 30, 2025, compared to $7,551 for the same period in the prior year. The increase reflects expenditures related to advancing L-130 (Psilocin Mucate) through preclinical studies and regulatory activities supporting proof-of-concept and investigational new drug filings.

• Cash flows used in operating activities were $579,006 for the quarter ended November 30, 2025, compared to $243,068 for the same period in the prior year.

• Net loss was $1,305,827 for the quarter ending November 30, 2025, compared to $800,634 for the same period last year.

Operational Highlights

During the quarter, Lobe continued to execute on its development strategy, with the majority of research and development expenditures incurred through Cynaptec Pharmaceuticals, Inc., the Company's subsidiary advancing L-130 (Psilocin Mucate). During Q1:2026, Lobe initiated and advanced preclinical, clinical, and regulatory activities, progressing the program in accordance with its development plan.

The Company maintained a fiscally conservative approach throughout the quarter, implementing tight controls over the use of cash while increasing development activity. In parallel, Lobe strengthened its development capabilities by adding additional scientific resources to support the advancement of its research and development efforts as programs move toward Phase 1 and Phase 2 clinical activities.

Product Development Overview

Lobe is advancing two strategic development programs through its subsidiaries:

1. Cynaptec Pharmaceuticals, Inc. (64% owned by Lobe) - L-130 for chronic cluster headache (lead program) and opioid use disorder, with other indications under strategic review.

2. Altemia, Inc. - S-100, an early-stage drug product candidate for sickle cell disease.

In addition to these two ongoing programs, the Company continues to evaluate other strategic opportunities consistent with its business strategy.

Cynaptec Pharmaceuticals, Inc.: L-130 - A CNS Therapeutic

L-130 is a proprietary, orally administered compound engineered as a stabilized derivative of psilocin, the pharmacologically active metabolite of psilocybin. The formulation is designed to improve stability and systemic exposure, with the objective of supporting consistent therapeutic performance. Psilocin has demonstrated potential utility across a range of neurological disorders.

L-130 is being developed initially for the treatment of chronic cluster headache, a debilitating neurological condition for which current therapeutic options remain limited. As previously disclosed in the Company's Management's Discussion and Analysis, a Phase 1a clinical study in healthy volunteers, together with a comprehensive body of supporting preclinical studies, has been completed outside of the United States in accordance with applicable regulatory and ethical standards. The Company continues to advance its development and partnering strategy in alignment with guidance received from the U.S. Food and Drug Administration through its Pre-IND interactions and through its regulatory network.

Altemia, Inc.: S-100 - Sickle Cell Disease Drug Product Candidate

During the quarter, Lobe also focused on its sickle cell disease program, S-100, an early-stage therapeutic candidate intended to address core disease mechanisms. S-100 utilizes a proprietary drug delivery approach and consists of a multi-component, polyunsaturated lipid-based formulation, primarily comprising of triglyceride esters of docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA), together with a patented absorption enhancing blend of excipients.

In addition, during the quarter the Company continued limited preliminary commercialization activities related to a proprietary medical food designed to address nutritional deficiencies commonly observed in patients with sickle cell disease. These activities remain focused on evaluating potential pathways for third-party reimbursement specifically in the State of Georgia. There can be no assurance that reimbursement approval will be obtained or that commercialization efforts will be successful. Should reimbursement not be achieved, the Company may pursue alternative strategies or elect to discontinue further commercialization activities.

Capital and Potential Value-Creation Strategy

During the quarter, the Company continued to execute its value creation strategy focused on advancing and realizing the intrinsic value of its existing research and development assets, while selectively evaluating additional opportunities aligned with its business objectives.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS NEWS RELEASE.

About Lobe Sciences Ltd. (CSE:LOBE)(OTCQB:LOBEF)(Frankfurt:LOBE.F)

Lobe Sciences Ltd. is a biopharmaceutical company advancing programs in diseases with unmet medical needs. The Company is pursuing strategic development through its subsidiaries, including a majority interest in Cynaptec Pharmaceuticals, Inc. and wholly owned subsidiary Altemia, Inc.

About Cynaptec Pharmaceuticals, Inc.

Cynaptec is a biopharmaceutical company dedicated to developing innovative therapies for neurological and psychiatric disorders. Cynaptec's initial development program is focused on the use of its proprietary L-130 (psilocin mucate) compound for treatment of the significant unmet medical needs of patients with Chronic Cluster Headache, with an additional preliminary proof-of-concept to assess potential utility for substance use disorders. Cynaptec is 64% owned by Lobe.

About L-130 (psilocin mucate)

L-130 is a novel, patented, oral, stable analog of psilocin, the active metabolite of the prodrugpsilocybin, designed to enhance bioavailability and therapeutic efficacy, which has been identified as having therapeutic potential in a variety of neurological conditions. Whereas conventional psilocin is an unstable compound that has been challenging for the industry to develop as a standalone pharmaceutical, L-130 stability and bioavailability profile, and associated safety and efficacy signals, suggest the potential for prescription drug development in a variety of neurological and psychiatric indications.

For Further Information

Dr. Frederick D. Sancilio
Chief Executive Officer
Lobe Sciences Ltd.
Email: [email protected]
Phone: +1 (949) 505-5623
Website: www.lobesciences.com

Cautionary Statement Regarding "Forward-Looking" Information

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including, without limitation: the Company's belief that its strengthened working capital position will reduce liquidity risk and enhance the Company's ability to execute on its business development initiatives; the Company's belief that its operational and financial stabilization program will position the Company to pursue value-accretive transactions and financing alternatives aligned with shareholder interests; the Company's belief that L-130 will have therapeutic use at sub-hallucinogenic doses and that in addition to the treatment of Chronic Cluster Headaches, L-130 may have additional therapeutic uses; the Company's intention to evaluate other strategic opportunities consistent with its business strategy; the Company's expectation that it will further strengthen its corporate infrastructure and advance its core development programs through disciplined milestone execution are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should" or "would" or occur.

Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including, among other things, that: a strengthened working capital position will reduce liquidity risk and enhance the Company's ability to execute on its business development initiatives; the Company's operational and financial stabilization program will position the Company to pursue value-accretive transactions and financing alternatives aligned with shareholder interests; L-130 will have therapeutic use at sub-hallucinogenic doses and that in addition to the treatment of Chronic Cluster Headaches, L-130 may have additional therapeutic uses; the Company will have the financial and operational resources to evaluate other strategic opportunities consistent with its business strategy; the Company will be able to further strengthen its corporate infrastructure and achieve its business milestones on the timelines anticipated, among others. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important risks that may cause actual results to vary, include, without limitation, the risk that: a strengthened working capital position will not reduce liquidity risk or enhance the Company's ability to execute on its business development initiatives; the Company's operational and financial stabilization program will be insufficient to allow the Company to pursue value-accretive transactions and financing alternatives aligned with shareholder interests; the Company may not have the financial and operational resources to evaluate other strategic opportunities consistent with its business strategy; L-130 fails to demonstrate therapeutic use at sub-hallucinogenic doses, fails to effectively treat Chronic Cluster Headaches or demonstrate other therapeutic uses; the Company will have the financial and operational resources to evaluate other strategic opportunities consistent with its business strategy; the Company will be unable to further strengthen its corporate infrastructure or achieve its business milestones or do so on the timelines anticipated.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

SOURCE: Lobe Sciences Ltd.

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F.Leblanc--SMC