Lobe Sciences Ltd (CSE:LOBE, OTCQB:LOBEF) has announced a change in voting control of the company and enhancements to its growth strategy.
The biopharmaceutical company said Clearway, a subsidiary of pharmaceutical services company Sancilio & Company which has been providing scientific support to Lobe for the past three years, has acquired voting control of the company following the completion of several transactions.
In April 2023, Lobe completed its acquisition of 100% of the ownership interest in Altemia & Company per a share exchange agreement. This share exchange agreement was amended in August 2023.
Per the amendment, the 76 million shares previously issued to the registered and beneficial holders of Altemia (the selling members) were returned and cancelled by the company under a share cancellation agreement, and upon the achievement of certain milestones, 69,160,000 shares were then issued on March 4, 2024, to Clearway at the request of the selling members.
Per a consulting agreement between Lobe and Clearway dated March 23, 2021, and amended on September 28, 2023, the company agreed to reconcile outstanding accounts payable in cash or at a premium of 105% in shares within 60 days of any invoice from Clearway. Lobe has issued 16,424,220 shares under the consulting agreement.
Clearway owns or exercises control or direction over an aggregate of 85,584,220 shares representing an approximately 52.7% stake in Lobe.
Lobe said that it and Clearway have several initiatives planned for the upcoming months including identifying new board members to increase the number of directors to five.
It said it is also working with a group of investors and contractors to secure funding and strengthen its balance sheet, reduce accounts payables and have operating capital to allow management to focus on communicating the scientific advancements it has made during previous years.
“I’m looking forward to working closely with Clearway and its entrepreneurial leadership,” Lobe CEO Phillip Young said in a statement. “I’ve worked with Clearway and the Sancilio organization for several years and they’ve been steadfast in their support of our research program.”
Clearway CEO Dr. Fred Sancilio added that he believes Lobe’s L-130, a novel and stable oral psilocin, should be viewed as an industry-leading drug with a wide array of potential applications.
“We intend to work with Lobe to begin an investor communications program, share the exciting data on the recently completed and reported trials and help unlock shareholder value,” Sancilio said.