Lobe Sciences Initiates Private Placement for Drug Development

Lobe Sciences Ltd. has announced a private placement of US$6 million to fund pre-clinical research and early-stage trials for its compound, Conjugated PsilocinTM. An option for an additional US$20 million is included, targeting chronic cluster headache research.

The newly formed subsidiary, Cynaptec Pharmaceuticals, Inc., will manage the development. Lobe has transferred relevant patents and intellectual property to Cynaptec. Funds will support Phase 1 and 2a clinical studies, with potential Phase 3 funding depending on the placement's option.

The private placement involves the issuance of preferred shares, offering anti-dilution protections and board representation. Immediate control remains with Lobe Sciences, owning 64% of Cynaptec's shares post-placement. Full option exercise could shift majority ownership.