Lobe Sciences Ltd (CSE:LOBE, OTCQB:LOBEF), a biopharmaceutical firm developing innovative medicines for rare diseases, told investors it is exploring strategic alternatives to improve shareholder value.
The company said that among the alternatives it has been considering are uplisting opportunities, for example, listing on the Australian Securities Exchange or the New York Stock Exchange.
It is also exploring out-licensing strategies to identify ways to maximize value recognition for its proprietary assets, specifically oral psilocin L-130 and Altemia, a medical food targeting sickle cell disease.
The company highlighted that nonclinical and clinical work carried out in 2023 for L-130 has identified "significant" therapeutic opportunities for the asset as a daily, non-hallucinogenic therapy for individuals with neurological disorders.
"As we review the psychedelic market, it is clear that L-130 is a differentiated compound with a very unique profile not seen in any other product,” Lobe Sciences CEO Philip Young commented.
“We will pursue every avenue to ensure our share value is reflective of the potential of our science."
Lobe Sciences added that it has closed a Convertible Note for $500,000 with partners Clearway Global and Quality Chemical Laboratories to bridge the company to a larger funding round expected at the end of this year or early 2025.
The company said the note will be funded in two tranches. The first tranche will be used to address critical accounts payable and the second will cover the legal and accounting costs associated with strategic alternatives.
Dr Fred Sancilio, Head of Lobe’s Clinical Development Programs and Clearway Global CEO, said: “We look forward to continuing our work with management refining the strategic direction aimed at creating shareholder value.”
“This alignment will keep the company focused on what is critical for our growth which must be the creation of value for all stakeholders including investors, management and ultimately patients who will use our drug products,” he added.
Lobe Sciences said it would provide further updates as it continues to evaluate strategic opportunities.