Dr. Frederick Sancilio reports

LOBE SCIENCES REPORTS FIRST QUARTER 2026 RESULTS AND HIGHLIGHTS

Lobe Sciences Ltd. had unaudited financial results for the first quarter of fiscal 2026 ended Nov. 30, 2025 (Q1 2026), and provided an update on operational progress for the quarter.

"During the first quarter of fiscal 2026, Lobe meaningfully accelerated its research and development activities, with R&D [research and development] expenditures increasing to just under $1-million as we advanced our core programs through Cynaptec Pharmaceuticals Inc.," said Dr. Fred Sancilio, chief executive officer of Lobe Sciences. "This progress reflects our transformative approach to drug development of next-generation serotonergic agents, combining our advanced pharmaceutical development expertise, focused subsidiary-level execution with centralized scientific and regulatory core competencies. Importantly, this increased level of activity was achieved alongside improved operating efficiency, underscoring the benefits of our shared services model. We believe this disciplined and scalable approach positions the company to continue advancing development initiatives while maintaining a strong financial foundation."

First quarter 2026 financial highlights:

• Cash totalled $5,991,614 as of Nov. 30, 2025.
• Short-term investments totalled $1,025,098 as of Nov. 30, 2025.
• Net working capital totalled $4,047,891 as of Nov. 30, 2025.
• Research and development expenses totalled $982,087 for the quarter ended Nov. 30, 2025, compared with $7,551 for the same period in the prior year. The increase reflects expenditures related to advancing L-130 (psilocin mucate) through preclinical studies and regulatory activities supporting proof of concept and investigational new drug filings.
• Cash flows used in operating activities were $579,006 for the quarter ended Nov. 30, 2025, compared with $243,068 for the same period in the prior year.
• Net loss was $1,305,827 for the quarter ending Nov. 30, 2025, compared with $800,634 for the same period last year.

Operational highlights

During the quarter, Lobe continued to execute on its development strategy, with the majority of research and development expenditures incurred through Cynaptec Pharmaceuticals, the company's subsidiary advancing L-130 (psilocin mucate). During Q1 2026, Lobe initiated and advanced preclinical, clinical and regulatory activities, progressing the program in accordance with its development plan.

The company maintained a fiscally conservative approach throughout the quarter, implementing tight controls over the use of cash while increasing development activity. In parallel, Lobe strengthened its development capabilities by adding additional scientific resources to support the advancement of its research and development efforts as programs move toward phase 1 and phase 2 clinical activities.

Product development overview

Lobe is advancing two strategic development programs through its subsidiaries:

1. Cynaptec Pharmaceuticals (64 per cent owned by Lobe) -- L-130 for chronic cluster headache (lead program) and opioid use disorder, with other indications under strategic review;
2. Altemia Inc. -- S-100, an early-stage drug product candidate for sickle cell disease.

In addition to these two continuing programs, the company continues to evaluate other strategic opportunities consistent with its business strategy.

Cynaptec Pharmaceuticals: L-130 -- a CNS (central nervous system) therapeutic

L-130 is a proprietary, orally administered compound engineered as a stabilized derivative of psilocin, the pharmacologically active metabolite of psilocybin. The formulation is designed to improve stability and systemic exposure, with the objective of supporting consistent therapeutic performance. Psilocin has demonstrated potential utility across a range of neurological disorders.

L-130 is being developed initially for the treatment of chronic cluster headache, a debilitating neurological condition for which current therapeutic options remain limited. As previously disclosed in the company's management discussion and analysis, a phase 1a clinical study in healthy volunteers, together with a comprehensive body of supporting preclinical studies, has been completed outside of the United States in accordance with applicable regulatory and ethical standards. The company continues to advance its development and partnering strategy in alignment with guidance received from the U.S. Food and Drug Administration through its pre-IND (investigational new drug) interactions and through its regulatory network.

Altemia: S-100 -- sickle cell disease drug product candidate

During the quarter, Lobe also focused on its sickle cell disease program, S-100, an early-stage therapeutic candidate intended to address core disease mechanisms. S-100 utilizes a proprietary drug delivery approach and consists of a multicomponent, polyunsaturated-lipid-based formulation, primarily comprising triglyceride esters of docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA), together with a patented absorption enhancing blend of excipients.

In addition, during the quarter, the company continued limited preliminary commercialization activities related to a proprietary medical food designed to address nutritional deficiencies commonly observed in patients with sickle cell disease. These activities remain focused on evaluating potential pathways for third party reimbursement, specifically in the state of Georgia. There can be no assurance that reimbursement approval will be obtained or that commercialization efforts will be successful. Should reimbursement not be achieved, the company may pursue alternative strategies or elect to discontinue further commercialization activities.

Capital and potential value creation strategy

During the quarter, the company continued to execute its value creation strategy focused on advancing and realizing the intrinsic value of its existing research and development assets while selectively evaluating additional opportunities aligned with its business objectives.

About Lobe Sciences Ltd.

Lobe Sciences 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 and wholly owned subsidiary Altemia.

About Cynaptec Pharmaceuticals Inc.

Cynaptec is a biopharmaceutical company dedicated to developing innovative therapies for neurological and psychiatric disorders. Cynaptec's initial development program is focused on the use of its proprietary L-130 (psilocin mucate) compound for treatment of the significant unmet medical needs of patients with chronic cluster headache, with an additional preliminary proof of concept to assess potential utility for substance use disorders. Cynaptec is 64 per cent owned by Lobe.

About L-130 (psilocin mucate)

L-130 is a novel, patented, oral, stable analogue of psilocin, the active metabolite of the pro-drug psilocybin, designed to enhance bioavailability and therapeutic efficacy, which has been identified as having therapeutic potential in a variety of neurological conditions. Whereas conventional psilocin is an unstable compound that has been challenging for the industry to develop as a stand-alone pharmaceutical, L-130 stability and bioavailability profile and associated safety and efficacy signals suggest the potential for prescription drug development in a variety of neurological and psychiatric indications.

We seek Safe Harbor.