Lobe Sciences Strengthens Financial Position with Debt Settlement

Vancouver-based Lobe Sciences Ltd. announced its plan to settle USD 137,130 of related party liabilities by issuing 3,837,686 common shares at C$0.05 each. This move seeks to fortify the balance sheet and conserve cash for strategic growth initiatives. The debt pertains to Clearway Global, LLC, a related entity, making this a "related party transaction" under Canadian law.

The share issuance requires approval from the Canadian Securities Exchange and will involve a four-month hold period under Canadian securities regulations. Lobe Sciences CEO, Dr. Fred D. Sancilio, highlighted that converting liabilities into equity will enhance operational flexibility and may improve stock liquidity.

This financial strategy aligns with Lobe’s focus on long-term growth, while maintaining shareholder interest and optimizing operational needs. The shares involved in this transaction are not registered under the U.S. Securities Act of 1933.