VANCOUVER, BRITISH COLUMBIA — January 8, 2026 — Leads & Copy —Lobe Sciences Ltd. (CSE:LOBE)(OTCQB:LOBEF)(Frankfurt:LOBE.F) (“Lobe” or the “Company”), a biopharmaceutical company focused on addressing diseases with unmet medical needs, has released its audited financial results for the fiscal year ended August 31, 2025 (“FY2025”) and provided an update on operational progress since the leadership transition and Board renewal that began in late 2024.
Dr. Frederick D. Sancilio, Chairman and CEO of Lobe Sciences, stated that the focus of fiscal 2025 was to strengthen Lobe’s balance sheet and responsibly fund core assets. He added that advancing L-130 through Cynaptec Pharmaceuticals, Inc. allowed the company to secure development capital while limiting dilution at Lobe, aligning capital with asset value.
Financial Highlights for FY2025
Lobe Sciences reported improvements to its balance sheet position and liquidity profile during FY2025:
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Cash increased to $5,854,118 on August 31, 2025, compared to $237,772 on August 31, 2024.
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Working capital improved to a surplus of $5,163,526, compared to a deficit of $2,008,849 on August 31, 2024.
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The current portion of convertible notes was eliminated on August 31, 2025, compared to $641,374 on August 31, 2024.
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Derivative liability decreased to $205,105 on August 31, 2025, from $603,724 on August 31, 2024.
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Short-term investments of $1,686,688 were held on August 31, 2025 (none reported on August 31, 2024).
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Loss per share was $0.03 for fiscal 2025, compared to $0.04 for fiscal 2024. The Company reported a net loss attributed to the parent company of $4,861,611 (FY2024: $4,420,727).
Management believes the strengthened working capital position reduces liquidity risk and improves the Company’s ability to pursue business development initiatives.
Progress Since Leadership Transition
Following the leadership transition and Board renewal in late 2024, Lobe implemented a broad operational and financial stabilization program aimed at strengthening governance and disclosure, reducing legacy balance-sheet complexity, and positioning the Company to pursue disciplined financing and value-focused business development opportunities.
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.
Product Development Program Summary
Lobe is advancing two product development programs through its subsidiaries:
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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.
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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 and leverage its development expertise.
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
During FY2025, Lobe refined its sickle cell disease strategy to prioritize S-100, an early-stage therapeutic candidate intended to address aspects of the underlying pathology of the disease. S-100 is based on a patented drug-delivery platform and comprises a lipid-based formulation primarily containing docosahexaenoic acid and eicosapentaenoic acid in triglyceride form, combined with pharmaceutical-grade surfactants.
The Company is also maintaining limited, preliminary commercialization activities related to a proprietary medical food intended to address nutritional deficiencies commonly observed in patients with sickle cell disease.
Potential Value-Creation Strategy
The Company’s strategy is focused on advancing the intrinsic value of its existing research and development assets. During fiscal 2025, Lobe’s market capitalization remained below $5.0 million, making parent-level financings highly dilutive. In response, the Company transferred its L-130 program into its wholly owned subsidiary, Cynaptec Pharmaceuticals, Inc., and completed a subsidiary-level financing that raised $8.46 million at a $22.56 million post-money valuation, while retaining a 64% ownership interest.
Outlook for FY2026
In FY2026, Lobe expects to build on progress made in FY2025 by continuing to strengthen its corporate infrastructure, advance its core development programs through disciplined milestone execution, and evaluate strategic opportunities aligned with shareholder interests.
Dr. Frederick D. Sancilio
Chief Executive Officer
Lobe Sciences Ltd.
Email: info@lobesciences.com
Phone: +1 (949) 505-5623
Source: Lobe Sciences Ltd.
