Mr. Philip Young reports

LOBE SCIENCES, LTD. ANNOUNCES AMENDMENT TO THE ACQUISITION OF ALTEMIA & COMPANY

On Aug. 30, 2023, Lobe Sciences Ltd. signed an amendment to the share purchase agreement to acquire a 100-per-cent interest in Altemia & Company LLC, which includes all assets, know-how, intellectual property and commercial inventory of the seller to manage patients suffering from sickle cell disease as originally announced on April 18, 2023.

Terms of the amendment

Pursuant to the amendment, the 76 million common shares of the company previously issued to the Altemia members shall be returned by the selling members to the company and cancelled by the company pursuant a share cancellation agreement. The 76 million Lobe shares shall be reissued upon the later of:

1. Achievement of the following milestones:
   1. 25 per cent on or after the closing date;
   2. 25 per cent on delivery of inventory to a Lobe designated storage facility;
   3. 25 per cent on the first commercial sale allowing the trademark validation;
   4. 25 per cent on successful completion of SAN100 tech transfer documentation (which includes batch records for research and development batch produced in a lab setting for use in a stability study and includes ingredients and manufacturing instructions) and samples of SAN100 are delivered to Lobe; collectively, clauses (a) through (d) are referred to as a milestone; each milestone a, b, c and d represents 19 million Lobe shares;
2. Within 10 days of selling member providing Lobe a written notice to release some or all of the then available shares with respect to which the applicable milestone has been met. Each Altemia member may in such notice designate one or more third parties to receive some or all of any such Lobe shares then available for release.

About Altemia & Company LLC

Altemia is the brand name of a patent-pending oral emulsion consisting of a proprietary mixture of polyunsaturated fatty acid triglyceride esters clinically evaluated to reduce inflammation associated in adults with SCD. The term medical food, as defined in Section 5(b) of the Orphan Drug Act (21 USC 360ee(b)(3)) is a food which is formulated to be consumed under the supervision of a physician and which is intended for the specific dietary management of a disease or condition for which distinctive nutritional requirements, based on recognized scientific principles, are established by medical evaluation. SCD is among a few inborn errors of metabolism specifically named in legislation that qualifies as treatable with medical foods. This product should not be confused with a previous product development program with a similar name. That program also called Altemia (SC411) was the project name used during the development of a drug product to treat SCD in children.

About Lobe Sciences Ltd.

Lobe is a biopharmaceutical company focused on developing patient-friendly, practical psychedelic medicines. The company, through collaborations with industry-leading partners, is engaged in drug research and development using subhallucinatory doses of psychedelic compounds and the development of innovative devices and delivery mechanisms to improve mental health and wellness. Each of its new chemical entities, L-130 and L-131, is being developed to address unmet medical needs in neurological therapeutic applications.

We seek Safe Harbor.