VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / January 6, 2026 / Lobe Sciences Ltd. (CSE:LOBE)(OTCQB:LOBEF)(FWB:LOBE.F) ("Lobe" or the "Company"), a biopharmaceutical company advancing programs in diseases with unmet medical needs, today reported audited financial results for the fiscal year ended August 31, 2025 ("FY2025") and provided an update on operational progress achieved since the Company's leadership transition and Board renewal beginning in late 2024.
Dr. Frederick D. Sancilio, Chairman and CEO of Lobe Sciences, stated: "During fiscal 2025, our focus was on strengthening the Company's financial position, reducing legacy liabilities, and ensuring that our core assets were funded in a manner that preserved long-term shareholder participation. By advancing L-130 (psilocin mucate) through Cynaptec Pharmaceuticals, Inc. and completing financing at the subsidiary level, we were able to secure capital for development while minimizing dilution at Lobe. We believe this approach better reflects the underlying value of the asset and provides a clearer path to advancing our programs without significant dilution of the Lobe shareholders."
FY2025 Financial Highlights
Lobe made significant progress strengthening its balance sheet and improving liquidity during FY2025:
Cash increased to $5,854,118 on August 31, 2025, compared to $237,772 on August 31, 2024
Short-term investments of $1,686,688 were held on August 31, 2025 (none reported on August 31, 2024)
Working capital improved to a surplus of $5,163,526, compared to a deficit of $2,008,849 on August 31, 2024
Convertible notes (current portion) decreased to $nil on August 31, 2025, from $641,374 on August 31, 2024
Derivative liability decreased to $205,105 on August 31, 2025, from $603,724 on August 31, 2024
For FY2025, the Company reported a net loss attributed to the parent company of $4,861,611 (FY2024: $4,420,727). Loss per share was $0.03 for fiscal 2025, compared to $0.04 for fiscal 2024, despite significant balance-sheet restructuring and increased investment in corporate infrastructure and development activities.
Management believes the strengthened working capital position significantly reduces liquidity risk and enhances the Company's ability to execute business development initiatives.
Strategic Transformation and Operating Progress Since Leadership Transition
Following the Company's leadership transition and Board renewal beginning in late 2024, Lobe undertook an extensive operational and financial stabilization program designed to improve corporate governance, strengthen disclosure practices, reduce legacy balance-sheet complexity, and position the Company to pursue value-accretive transactions and financing alternatives aligned with shareholder interests.
In FY2025, this transformation translated into a materially improved liquidity position and a clearer corporate structure focused on two core strategic development programs advanced through subsidiaries, as described below.
Product Development Overview
Lobe is advancing two strategic development programs through its subsidiaries:
Cynaptec Pharmaceuticals, Inc. (64% owned by Lobe) - L-130 for chronic cluster headache (lead program) and substance use disorder, with other indications under strategic review.
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 novel, patented, oral, stable analog of psilocin, the active metabolite of the prodrug psilocybin, designed to enhance bioavailability and therapeutic efficacy. Psilocin has been identified as having therapeutic potential in a variety of neurological conditions. The lead indication for L-130 is chronic cluster headache, a neurological condition with limited treatment options and significant unmet clinical need.
As described in the Company's MD&A, a Phase 1a study in healthy volunteers and supporting preclinical work have been completed internationally under applicable standards, and the Company is continuing to advance the development plan and partnership strategy in line with US FDA guidance received in its Pre-IND correspondence.
Altemia, Inc.: S-100 - Sickle Cell Disease Drug Product Candidate
In FY2025, Lobe sharpened its focus within the sickle cell disease program by prioritizing S-100, an early-stage therapeutic candidate intended to address the underlying pathology of the disease. S-100 utilizes a patented drug delivery platform and comprises a complex blend of lipid-based active ingredients, primarily docosahexaenoic acid and eicosapentaenoic acid in triglyceride form with pharmaceutical-grade surfactants.
Separately, the Company is also conducting preliminary and limited commercialization activities for a proprietary medical food intended to address nutritional deficiencies often observed in patients with sickle cell disease. Current efforts are focused primarily on pursuing third-party reimbursement authorization, and there can be no assurance reimbursement will be obtained or that the medical food will be commercially viable. If reimbursement is not achieved, the Company may pursue alternative strategies or discontinue commercialization efforts.
Capital and Potential Value-Creation Strategy
The Company's value creation strategy is focused on advancing and realizing the intrinsic value of its existing research and development assets, while continuing to evaluate additional development opportunities consistent with its business strategy.
During fiscal year 2025, the Company's market capitalization remained below $5,000,000. Under these conditions, raising capital at the parent-company level was challenging, as even relatively small financings would have resulted in significant dilution to existing shareholders. Management believes that, during this period, the public market did not fully reflect the underlying value of the Company's research and development assets.
In response, the Company transferred its L-130 program into its wholly owned subsidiary, Cynaptec. The Company subsequently completed a financing at the subsidiary level, raising $8,460,000 at a post-money valuation of $22,560,000. Following the completion of this financing, the Company retained a 64% ownership interest in Cynaptec.
Management believes this transaction represents an important milestone in the Company's strategy, as it supports the advancement of the L-130 program, provides capital at the subsidiary level without dilution to the Company's shareholders, and preserves meaningful long-term participation in the program's potential value.
Outlook for FY2026
In FY2026, the Company expects to continue building on FY2025 progress by further strengthening corporate infrastructure, advancing its core development programs through disciplined milestone execution, and evaluating strategic opportunities intended to maximize shareholder value. The timing, structure, and outcomes of any such initiatives remain subject to market conditions, financing availability, regulatory considerations, and other factors described under "Forward-Looking Statements" below.
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)(FWB: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 prodrug psilocybin, 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: info@lobesciences.com
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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https://www.accessnewswire.com/newsroom/en/biotechnology/lobe-sciences-reports-fiscal-2025-results-and-highlights-strategic-transformation-fol-1124316
