Lobe Sciences and Cantheon Capital Enter into Exclusive Investment Agreement to Fund $1.5M USD Toward Clinical Trials in Australia

Lobe Sciences Ltd. (CSE: LOBE | OTCQB: LOBEF), a Canadian Biopharmaceutical company committed to discovering and developing psychedelic derived medicines for neurologic and brain disease today announced it has entered into a term sheet contemplating convertible note financing bearing interest at 15% per annum with a term of 12 months with Cantheon Capital for aggregate proceeds to the company of up to USD$1,500,000 to conduct three clinical trials in Australia with newly announced partner iNGENū Pty Ltd. The Convertible Notes will help fund the design and conduct of three clinical trials evaluating Lobe’s proprietary psilocin analogues L-130 or L-131

Aaron Ray, General Partner of Cantheon Capital commented, “Our firm is committed to identifying and funding the most innovative and highest potential biotech companies in the psychedelic or cannabis market. Lobe Sciences fits our criteria as they have progressed rapidly in the last year and are now ready to initiate human clinical trials with their novel psilocin analogues L-130 and L-131. We look forward to working together as we work to identify new and effective therapies.”

Cantheon agreed to lend Lobe, through six (6) distinct tranches, an aggregate of USD$1,500,000. The tranches of the Convertible Notes will be triggered by various operational events in connection with the trials evaluating Lobe’s proprietary psilocin analogues L-130 or L-131, such as the clinical trial deposit and achievement of first patient enrolments in each such trial. The Company intends to use the proceeds of the Convertible Notes to fund its clinical trials and research and development activities in collaboration with iNGENū.

The Convertible Note conversion price, if executed, shall be the closing price of the Company’s common shares as quoted on the Canadian Securities Exchange (“CSE”) the effective day of the Convertible Note, subject to a minimum of $0.05 (the “Conversion Price”). The Convertible Notes include a number of warrants to be determined by the Conversion Price, with an exercise price consistent with the Conversion Price, and a term of three years. In accordance with the terms of the Convertible Notes, the conversion price per Common Share shall be adjusted upwards to ensure that Cantheon and its affiliates shall not beneficially own, or have control or direction over, Common Shares in excess of 19.99% of the number of Common Shares issued and outstanding immediately after giving effect to the issuance of Common Shares issuable under the applicable tranche.

The securities issued pursuant to the conversion of the Convertible Notes and the Warrants and common shares underlying the Warrants will be subject to a four-month hold period from the date of their respective issuance. Completion of the Convertible Notes remains subject to the completion of a definitive agreement and the receipt of all necessary regulatory approvals, including the approval of the CSE.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities of the Company in the United States. The securities described in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (“U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Lobe Sciences is a life sciences company focused on psychedelic medicines. The Company, through collaborations with industry-leading partners, is engaged in drug research and development using psychedelic compounds and the development of innovative devices and delivery mechanisms to improve mental health and wellness.

Cantheon Capital is passionate about the pharmaceutical development of cannabinoids and psychedelic drugs. We support early and mid-stage biotechs looking to make advances through clinical trials with a view to create novel FDA registered pharmaceuticals. Our expertise is in understanding which Bio Pharma companies are likely to achieve success through a combination of: great assets, great team, great advisors, and great strategy. Cantheon Capital supports cannabinoid and psychedelic biotechs with corporate advisory, capital funding and detailed scientific advice.

iNGENū is a globally-focused Contract Research Organization working exclusively in the cannabinoid and psychedelic space. A full-service CRO performing clinical trials for US, Canadian and European sponsors in Australia. The Australian advantage is the ability to perform FDA registration clinical trials prior to opening an IND, accessing the lucrative 43.5% research and development rebate from the Australian Government on all research expenses, and rapid start-up of clinical trials in under 12 weeks.