Lobe Sciences Announces Further Upsizing and Second Closing of Non-Brokered Private Placement



Ryan Allway

January 6th, 2021

Psychedelics


Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe“) is pleased to announce, that due to strong investor demand, it has further upsized its previously announced non-brokered private placement of units (the “Units“) from $2,700,000 to $3,445,847 (the “Offering“) and has completed a second and final tranche closing, raising gross proceeds of $1,118,747 (the “Second Tranche Closing“). The Second Tranche Closing consisted of the issuance of an aggregate of 11,187,475 Units at a price of $0.10 per Unit. Together with the first closing, which was announced on December 24, 2020, the Company has raised total gross proceeds of $3,445,847 pursuant to the Offering, through the issuance of an aggregate of 34,458,475 Units.

Each Unit consists of one common share in the capital of the Company (each a “Share“) and one share purchase warrant (each a “Warrant“). Each Warrant entitles the subscriber to acquire one additional Share at a price of $0.25 per Share for a period of two years from the applicable closing date, subject to an accelerated expiry 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 $0.35 per Share, in which case Lobe may provide notice 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. No finder’s fees were paid in connection with the Offering.

Jonathan Gilbert, Executive Chairman of Lobe, said, “We are extremely pleased with the support we have seen for the Company and the Offering, from both existing and new strategic shareholders, which resulted in upsizing our original offering by over $1.44 million. Our industry is seeing tremendous growth and we intend to build upon this momentum and showcase the Company as a leader by achieving key milestones, including development of our nasal mist device, furthering our pre-clinical studies, closing the Cowlitz sale transaction, and achieving other Company growth initiatives.”

Proceeds from the Offering are expected to be used to fund the Company’s existing business operations, pre-clinical 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 Shares and Warrants comprising the Units issued pursuant to the Offering are 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.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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