Lobe Sciences Improves Balance Sheet

VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / October 9, 2025 / Lobe Sciences Ltd. ("Lobe" or the "Company") (CSE:LOBE)(OTCQB:LOBEF)(FWB:LOBE.F), operates as a pharmaceutical platform that develops novel therapies through a scalable model of shared services, global teams, and outsourced infrastructure. The Company creates intellectual property, packages it into subsidiaries, and advances each toward clinical and commercial milestones.

The Company is pleased to announce the proposed settlement of USD 137,130 (CAD 191,884.32) in related party liabilities through the issuance of 3,837,686 common shares (the "Settlement Shares") at a price of C$0.05 per share (the "Debt Settlement"). This transaction reflects a proactive approach to strengthening Lobe's balance sheet and preserving cash for strategic growth initiatives. The accounts payable being settled represent amounts owed to Clearway Global, LLC (the "Creditor").

The Settlement Shares will be subject to a statutory hold period of four months from the date of issuance under applicable Canadian securities laws and the policies of the Canadian Securities Exchange, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. Closing of the Debt Settlement remains subject to approval by the Canadian Securities Exchange.

The Creditor is a "related party" to the Company and the Debt Settlement constitutes a "related party transaction", as such terms are defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), by virtue of the Creditor: (i) holding greater than 20% of the issued and outstanding common shares of the Company; and (ii) being beneficially owned and controlled by a director and officer of the Company. The directors of the Company have determined that the Debt Settlement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101.

"By converting liabilities into equity, Lobe strengthens its balance sheet and aligns stakeholders with our long-term growth strategy," said Dr. Fred D. Sancilio, Chief Executive Officer and Chairman of Lobe Sciences. He continued, "This structure enhances operational flexibility, reflects our commitment to disciplined capital management, and may improve stock liquidity, particularly given the concentration of shares held by insiders and strategic partners."