VANCOUVER, BC / ACCESS Newswire / May 6, 2026 / Lobe Sciences Ltd. (CSE:LOBE)(OTCQB:LOBEF)(Frankfurt:LOBE.F), a clinical-stage biopharmaceutical company that advances high-potential drug candidates through a disciplined pharmaceutical development platform, progressing assets from early development to the clinic through focused subsidiary companies, today announced its unaudited interim financial results for the second quarter of fiscal 2026 ended February 28, 2026 ("Q2 2026") and provided an operational update.
During the quarter, the Company continued to advance its development pipeline while maintaining a disciplined approach to capital allocation. Management believes the progress achieved in Q2 2026 reflects continued execution on its strategic priorities and reinforces the Company's focus on building long-term shareholder value.
Second Quarter 2026 Financial Highlights (as of February 28, 2026)
Cash and Liquidity: Cash totaled $1,071,199, with additional short-term investments of $3,889,632, supporting ongoing development activities.
Working Capital: Net working capital was $2,160,073.
Research and Development: R&D expenses were $2,115,338 for the six months ended February 28, 2026, compared to $20,474 in the prior year period. The increase reflects advancement of the Company's core programs, Cynaptec's L-130 (psilocin mucate) program and Applied Lipid Therapeutic's S-100 (DHATG and EPATG) program.
Operating Cash Flow: Cash used in operating activities was $2,637,862 for the six-month period, compared to $610,307 in the prior year, consistent with expanded development activities.
Net Loss: Net loss for the quarter was $3,693,896, compared to $1,503,662 in the same period last year, primarily reflecting increased investment in R&D and corporate infrastructure.
The financial and operational information outlined in this news release is derived from, and should be read in conjunction with, the Company's interim financial statements for Q2 2026 and the related management's discussion and analysis thereof, copies of which are available under the Company's profile on SEDAR+ at www.sedarplus.ca.
CEO's Comments
"During the first six months of fiscal 2026, we advanced both of our core subsidiary programs, L-130 through Cynaptec Pharmaceuticals and S-100 for sickle cell disease through Applied Lipid Therapeutics," said Dr. Fred Sancilio, CEO of Lobe Sciences Ltd. "Our approximately $2.1 million in R&D spend was driven primarily by external development work on L-130, while S-100 continued to move forward through focused internal efforts. We are also seeing increased market interest and inbound opportunities, but we are approaching these selectively and with discipline. Our priority remains straightforward: advance both programs in a measured way while maintaining control of our capital and building long-term value."
Subsequent Event
Subsequent to quarter-end, the Company completed a non-brokered private placement, issuing 14,615,384 common shares at $0.065 per share for gross proceeds of approximately $950,000. The financing was completed at pricing reflective of prevailing market conditions at the time and provides additional working capital to support the continued advancement of the Company's development programs.
Cynaptec Pharmaceuticals, Inc.: L-130 - CNS Therapeutic Program
L-130 (psilocin mucate) is a patented, highly bioavailable, orally administered new chemical entity (NCE) designed as a stabilized form of psilocin, the active metabolite of psilocybin. The NCE is designed to provide enhanced stability, improved bioavailability, and more consistent circulating levels of psilocin, supporting reliable systemic exposure relative to traditional psilocybin-based approaches. Development of L-130 is being conducted by Cynaptec Pharmaceuticals, Inc., a subsidiary of the Company in which Lobe holds a 64% ownership interest.
L-130 is initially being developed for the treatment of chronic cluster headache, a severe neurological condition with limited treatment options. The program is advancing in alignment with guidance received from the U.S. Food and Drug Administration following pre-IND interactions.
Applied Lipid Therapeutics LLC: S-100 - Sickle Cell Disease Program
S-100 is an early-stage therapeutic candidate for sickle cell disease being developed through Applied Lipid Therapeutics LLC, a subsidiary of the Company. It is designed to address underlying disease mechanisms using a lipid-based delivery platform, consisting of a unique blend of triglyceride esters of docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA), combined with a patented absorption-enhancing excipient system to improve bioavailability. The Company is advancing chemistry, manufacturing, and controls (CMC) activities to support production of clinical supply for a planned Phase 2a study.
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
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ACCURACYOR ADEQUACY OF THIS NEWS RELEASE.
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 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 belief that S-100 will have therapeutic use for the treatment of sickle cell disease; the expected advancement of the Company's development pipeline, including planned chemistry, manufacturing and controls activities and a planned Phase 2a study for S-100; the anticipated use of proceeds from the recently completed non-brokered private placement; the Company's intention to evaluate other strategic opportunities consistent with its business strategy; and 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" 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 news release, including, among other things, 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; S-100 will have therapeutic use as a treatment for sickle cell disease; the Company will have the financial and operational resources to advance its development programs and evaluate other strategic opportunities consistent with its business strategy; and 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: L-130 fails to demonstrate therapeutic use at sub-hallucinogenic doses, fails to effectively treat chronic cluster headaches or fails to demonstrate other therapeutic uses; S-100 fails to demonstrate therapeutic use as a treatment for sickle cell disease; the Company may not have the financial and operational resources to advance its development programs or to evaluate other strategic opportunities consistent with its business strategy; the Company may be unable to further strengthen its corporate infrastructure or achieve its business milestones, or to do so on the timelines anticipated; the Company may be unable to obtain required regulatory approvals from the U.S. Food and Drug Administration, Health Canada or other regulatory authorities; and the additional risks identified in the Company's management's discussion and analysis and other continuous disclosure documents filed by the Company on SEDAR+ at www.sedarplus.ca.
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, which speak only as of the date of this news release. 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 outlook, whether as a result of new information, future events or otherwise, exceptin accordance with applicable securities laws.
SOURCE: Lobe Sciences Ltd.
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https://www.accessnewswire.com/newsroom/en/biotechnology/lobe-sciences-reports-second-quarter-2026-results-and-highlights-continued-operationa-1164072
