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 that it has closed a non-brokered private placement of units for gross proceeds of $1,347,500.
“We are extremely pleased to close this financing and are thankful for the support and confidence of our investors who join us in seeing the potential of our clinical development plan. This funding combined with the entering into of the recently announced convertible notes of up to $1.5M with Cantheon Capital will enable us to execute our plan to advance our proprietary psilocin compounds into human clinical trials.”
Philip J. Young, Chief Executive Officer of Lobe.
Proceeds from the Offering are expected to be used for manufacturing and regulatory activities necessary to support initial human clinical trials with novel psilocin analogues L-130 and L-131 general working capital purposes, and marketing.
The Offering consisted of the issuance of an aggregate of 28,262,800 Units (inclusive of Units issued to finders) at a price of $0.05 per Unit. Each Unit consists of one common share in the capital of the Company (each a “Share”) and one common share purchase warrant. Each Warrant entitles the subscriber to acquire one additional Share at a price of $0.05 per Warrant until September 8, 2025, subject to an accelerated expiry if, on any 10 consecutive trading days occurring after four months and one day has elapsed following September 8, 2022, the closing price of the Shares (or the closing bid, if no sales were reported on a trading day) as quoted on the Canadian Securities Exchange is greater than $0.05 per Share, in which case Lobe may provide notice to the holders of the Warrants by issuance of a news release announcing that the expiry date of the Warrants will be accelerated to the 30th day after the date on which Lobe issues such news release. The Company paid Peak Asset Management of Melbourne Australia a finders fee equal to 8% of funds raised in Australia in connection with the Offering. The total finders fee was $65,640 which was settled through the issuance of 1,312,800 Units.
All Shares and Warrants comprising the Units issued pursuant to the Offering are subject to a statutory four month and one day hold period from the date of issue in accordance with applicable Canadian securities laws. None of the Units will be registered under the United States Securities Act of 1933, as amended, and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Lobe Sciences Ltd.
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.