Berliner Tageblatt - Lobe Sciences Ltd. Reports Improved Financial Position and Strategic Update

VANCOUVER, BC / ACCESS Newswire / March 25, 2026 / Lobe Sciences Ltd. ("Lobe" or the "Company") (CSE:LOBE)(OTCQB:LOBEF)(Frankfurt:LOBE) today provided a strategic and financial update highlighting significant improvements in its financial position since August 31, 2024, following a change in management.

Since fiscal year-end 2024, the Company has materially strengthened its balance sheet and capital structure. Convertible debt and other liabilities were reduced from $2,350,637 to $436,864, a decrease of approximately 81%. Outstanding warrants were reduced from approximately 43 million to approximately 13 million, lowering potential future dilution by approximately 70%.

Over the same period, Lobe increased its cash position from $237,772 to $5,991,614 and grew total assets from $258,570 to $7,084,174. Net working capital improved by approximately $6.1 million, from ($2,008,849) to $4,047,891. The Company believes these changes reflect a more disciplined and capital-efficient strategy and provide a stronger foundation from which to advance its development programs.

Lobe has adopted a more capital-efficient, subsidiary-based development model designed to reduce parent-level overhead, share scientific and administrative resources across programs, and limit shareholder dilution. The Company has established Cynaptec Pharmaceuticals, Inc. and Applied Lipid Technologies Inc. to advance development programs in chronic cluster headache, substance use disorders and sickle cell disease, while preserving parent-level equity value.

Under this model, subsidiaries share overhead and scientific personnel, reducing per-program costs while benefiting from greater efficiency in the use of outside resources across multiple concurrent projects. The Company continues to evaluate opportunities to expand this model into synergistic areas that may further enhance capital efficiency and shareholder value.

"This past year reflects a deliberate effort to strengthen Lobe's balance sheet in a way that minimizes dilution and preserves long-term shareholder value," said Dr. Fred Sancilio, CEO, Chairman and major shareholder of Lobe Sciences. "We achieved this in part by raising capital through the sale of a 34% interest in Cynaptec Pharmaceuticals at a valuation that we believe better reflected the underlying value of the L-130 program, while allowing Lobe to retain majority ownership of the subsidiary and its technology. We also converted most of our outstanding convertible notes into Lobe equity on favorable terms, without warrants or other financial incentives, which materially reduced liabilities and simplified our capital structure. Together, these steps strengthened our cash position, improved working capital, and extended our operating runway, and were reflected in our most recent audit, which did not include a going concern explanatory paragraph. We believe this stronger financial foundation better positions us to advance our subsidiaries' clinical programs in a disciplined and capital-efficient manner."

Management anticipates multiple potential development and strategic milestones in the coming months as the Company continues to advance its subsidiary programs and evaluate strategic opportunities to enhance shareholder value.

NEITHER THE CANADIANSECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWEDOR ACCEPT RESPONSIBILITY FOR THE ACCURACYOR 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 Applied Lipid Technologies Inc. (Formerly 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's 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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