Lobe Sciences Reports Third Quarter 2026 Financial Results
VANCOUVER, BC / ACCESS Newswire / August 18, 2026 / Lobe Sciences Ltd. (CSE:LOBE)(OTCQB:LOBEF)(Frankfurt:LOBE.F) ("Lobe" or the "Company"), a clinical-stage biopharmaceutical company advancing therapeutic development programs through focused subsidiary companies, today announced its unaudited interim financial results for the third quarter of fiscal 2026 ended May 31, 2026 ("Q3 2026").
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 Q3 2026 reflects continued execution on its strategic priorities and reinforces the Company's focus on building long-term shareholder value.
Third Quarter 2026 Financial Highlights (as of May 31, 2026)
Cash and Liquidity: Cash totaled $1,505,214, with additional short-term investments of $3,701,857, supporting ongoing development activities.
Working Capital: Net working capital was $3,203,878.
Research and Development: R&D expenses were $2,447,083 for the nine months ended May 31, 2026, compared to $301,915 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 $3,345,331 for the nine-month period, compared to $1,018,515 in the prior year, consistent with expanded development activities.
Net Loss: Net loss for the quarter was $4,835,365, compared to $2,638,422 in the same period last year, primarily reflecting increased investment in R&D and corporate infrastructure.
Directors and Officers Increased Equity Position
Directors and Officers elected to receive equity in place of cash compensation by way of settling accrued fees of $1,372,762 through the issuance of 12,479,643 common shares of the company at a deemed price of $0.11 per share, further aligning with shareholders. The Canadian Securities Exchange (the "Exchange") accepted the issuance of the settlement shares which are subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws, in addition to any other restrictions that apply under the securities laws of jurisdictions outside Canada.
Non-brokered Private Placements
The Company closed a non-brokered private placement offering of 14,615,384 common shares in the capital of the Company at a price of $0.065 per common share, for aggregate gross proceeds of approximately $950,000.
The Company intends to use the proceeds of the private placement for working capital and general corporate purposes, to advance its S-100 drug candidate for the treatment of sickle cell disease and support the development of the S-100 program toward human clinical trials. The Company has procured the active pharmaceutical ingredient required for these studies, enabling the program to move forward. All securities issued in connection with the private placement are subject to a four-month hold period from the closing date under Exchange policies and applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Subsequent to the end of the third quarter, the Company announced a further non-brokered private placement offering of 24,705,880 common shares in the capital of the Company at a price of $0.085 per common share, for aggregate gross proceeds of approximately $2,100,000 (the "August Private Placement"). The Company intends to use the net proceeds of the August Private Placement to fund cash reserves, further clinical development of the S-100 molecule being developed by the Company's subsidiary, Applied Lipid Technologies Inc., and for working capital and general corporate purposes.
The August Private Placement is anticipated to close on or about August 19, 2026, and remains subject to receipt of all necessary regulatory approvals, including acceptance by the Exchange. All securities issued in connection with the August Private Placement will be subject to a four-month hold period from the closing date under Exchange policies and applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
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. ("Cynaptec") and wholly owned subsidiary Applied Lipid Technologies Inc ("Applied").
About Cynaptec Pharmaceuticals, Inc.
Cynaptec is a biopharmaceutical company dedicated to developing innovative therapies for neurological and psychiatric disorders. Cynaptec's initial development program focuses on the use of its proprietary L-130 (psilocin mucate) compound for treatment of the significant unmet medical needs of patients with certain neurological disorders including cluster headache, substance use disorders and general anxiety disorder. Cynaptec is 64% owned by Lobe.
About Applied Lipid Technologies, Inc.
Applied is a biopharmaceutical company focused on treating membranopathies through orally bioavailable lipid emulsions containing long-chain polyunsaturated fatty acid esters. The initial target indication for Applied's lead asset, S-100, is the treatment of sickle cell disease (SCD), a serious inherited disorder affecting more than 100,000 people in the United States and millions worldwide. Applied believes that S-100 may be eligible for orphan-drug designation under the Orphan Drug Act of the U.S. Food, Drug, and Cosmetic Act. The Company also intends to evaluate S-100's eligibility under the USFDA's Rare Pediatric Disease Priority Review Voucher Program as amended and extended through September 30, 2029, by the U.S. Consolidated Appropriations Act, 2026.
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
Forward-Looking Information
This news release contains certain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). All statements contained herein that are not statements of historical fact are forward-looking statements, including, without limitation, statements regarding the Company's business strategy and objectives; the advancement and development of L-130 and S-100; the anticipated use of proceeds of the August Private Placement; the Company's ability to obtain all necessary regulatory approvals, including acceptance by the Exchange of the August Private Placement and the anticipated timing thereof; anticipated regulatory submissions, interactions and approvals; potential orphan drug designation; planned clinical studies; and the Company's ability to create shareholder value through subsidiary development programs and strategic initiatives.
Forward-looking statements are based upon management's current expectations, estimates, assumptions and projections as of the date of this news release, including, without limitation, the material assumptions that the Company's preclinical and regulatory development activities for L-130 and S-100 will proceed substantially in accordance with current plans and timelines; that the Company will have access to sufficient capital to fund its planned development programs; that the August Private Placement will close on or about August 19, 2026; that the Company will be able to use the net proceeds of the August Private Placement as anticipated; that the Company will obtain all necessary regulatory approvals, including acceptance by the Exchange, on the timeline anticipated by management; and that applicable regulatory authorities will respond to submissions and interactions within the timeframes currently anticipated. Such statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control, that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to, risks associated with regulatory approvals and interactions; the Company's inability to use the proceeds of the August Private Placement as anticipated; the Company's inability to obtain acceptance by the Exchange or other necessary regulatory approvals in connection with the August Private Placement, or to obtain such approvals on the anticipated timeline; the Company's inability to complete the August Private Placement on or about August 19, 2026; clinical and preclinical development activities; research and development outcomes; intellectual property protection; manufacturing and supply chain matters; financing requirements; capital markets conditions; competition; the evolving legal and regulatory status of psilocybin and other psychedelic-derived compounds in the jurisdictions in which the Company operates or intends to operate; and other risks described from time to time in the Company's public disclosure documents.
Although the Company believes the assumptions and expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such statements will prove to be accurate. Actual results and future events may differ materially from those anticipated in such statements. Readers are therefore cautioned not to place undue reliance on forward-looking statements.
The Company undertakes no obligation to update or revise any forward-looking statements contained herein, except as required by applicable securities laws.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ACCURACYOR ADEQUACY OF THIS NEWS RELEASE.
SOURCE: Lobe Sciences Ltd.
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