Lobe Sciences Announces Non-Brokered Private Placement

Vancouver, British Columbia–(Newsfile Corp. – December 14, 2020) – Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company“) is pleased to announce that it intends to raise up to Cdn$2,000,000 (the “Offering“) through a non-brokered private placement of up to 20,000,000 units (the “Units“) at a price of Cdn$0.10 per Unit.

Each Unit will consist of one common share in the capital of the Company (each a “Share“) and one share purchase warrant (each a “Warrant“). Each Warrant will entitle the subscriber to acquire one additional Share at a price of Cdn$0.25 per Warrant for a period of two years from the applicable closing date, subject to an accelerated expiry provision described herein. If on any 10 consecutive trading days occurring after four months and one day has elapsed following the final closing date of the Offering, 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 (the “CSE“) is greater than Cdn$0.35 per Share, Lobe may provide notice in writing to the holders of the Warrants by issuance of a news release 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 closing of the Offering is subject to a number of conditions, including but not limited to, approval of the Offering by the CSE. The Offering may be closed in one or more tranches. The Company may pay finders fees to eligible finders.

 

Proceeds from the Offering are expected to be used to fund the Company’s existing business operations, preclinical studies with N-Acetylcysteine and psilocybin, device development/engineering, general working capital, marketing and costs of the Offering. Although the Company intends to use the proceeds of the Offering as described above, the actual allocation of proceeds may vary from the uses set out above depending on future operations, events or opportunities.

The Offering will be completed pursuant to certain exemptions from the prospectus requirement under applicable Canadian securities laws. The Shares and Warrants comprising the Units issued pursuant to the Offering will be 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 is a growth-oriented research, technology & services company that provides financial, management, IP and branding support to businesses. The Company operates a portfolio of companies focused on developing transformational medicines and applies refined strategies to help partner companies reach their full potential. Based in Vancouver, BC, Lobe Sciences creates value through acquisitions and development of assets, products and technologies by leveraging its scientific, engineering, branding and operational expertise supported by strong capital markets acumen.

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