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Lobe Sciences: Strengthening Assets for Explosive Growth in the Psychedelics Sector

04 Dec 2020 | by: Kirsteen Mackay

Lobe Sciences Ltd (CSE:LOBE | OTCPink:GTSIF)

Psychedelics are in the spotlight this year, enjoying stimulation as they’re recognised for the good they can do in treating depression and other mental health troubles. In a world that’s increasingly processed, manufactured and engineered, natural products are sought after. Lobe Sciences Ltd (CSE: LOBE | OTC Pink: GTSIF) is a newly rebranded company investing in this area.

Leveraging Transformative Medicine to Improve and Enhance Mental Health

Traditional medicines are being shunned in favour of natural alternatives as it’s refreshing to absorb something pure. Psychedelics have a natural ability to ease the debilitating effects of depression and severe mental health conditions. Lobe Sciences is a research and development (R&D) company developing unique medicines and devices to treat mild traumatic brain injury (mTBI) and post-traumatic stress disorder (PTSD) along with other mental health conditions.

Lobe is working alongside the medical community to give patients the best of both worlds. Through its extensive research, it’s focussing on the clinical development of devices and the use of psychedelic medicines to treat specific indications and brain traumas.

The company comprises a small team of pioneering scientists and engineers, who share the vision of developing alternative treatments to achieve better health and wellness. Together they are working on creating a portfolio of transformational intellectual property, which will support wellbeing and improve all-round mental health.  

Lobe Sciences has five provisional patents in place. It’s begun a pre-clinical study and is engineering the development of a drug delivery device for Psilocybin through its Nasal Mist Transducer. The team is on a mission to discover and advance the creation of transformative new medicines, compounds and devices for the benefit of all.

Rebranding for a New Beginning

Lobe Sciences is the newly launched rebrand of a strong team committed to leading in the therapeutics space. It is determined to become a leader in developing effective therapeutics and devices using psychedelic and other naturally occurring compounds.

With a pure focus on the transformational power of psychedelic medicines, Lobe is at the forefront of a mushrooming industry. It sees this rebrand as the perfect way to embrace its vision and capitalize on the growth in this sector. This will ultimately bring great advantage to both the team and shareholders alike.

Lobe Sciences Sells Cowlitz Cannabis Option

On Dec 1, Lobe Sciences announced a letter of intent for the sale of its Cowlitz Cannabis Option to Ionic Brands Corp. (CSE: IONC) for CAD$23,000,000. Ionic is a growing US cannabis company focused on premium cannabis products.

The sale, when it closes, allows Lobe to focus solely on its psychedelic vision. It will receive the CAD$23 million in Ionic shares, expected to be around 49% of Ionic’s estimated $47 million capitalization post-restructuring.

While Lobe was enjoying monthly revenues from licensing and leasing agreements with Cowlitz, the company would prefer to streamline its focus on its psychedelics business. It believes this decision is good for shareholders and the business alike. The two businesses are complementary to one another, but the deal allows the Lobe team to focus on their area of expertise and lean on the expertise of Ionic when it comes to further growth and expansion down the line.

Tom Baird, CEO of Lobe comments:

“The proposed transaction with Ionic is accretive to both parties, successfully meets our M&A initiatives and keeps Lobe active in the cannabis and overall transformation psychedelic medicine space. It provides Lobe with significant ownership and board presence in Ionic. With its already significant operations in Washington State and Oregon, we feel Ionic’s proposed product expansion initiatives together with the addition of the Cowlitz Assets can lead to aggressive growth.”

A Pioneer in Psychedelic Medicines

Lobe Sciences has two main areas of expertise; growing its intellectual property portfolio through its R&D in transformational medicine and capitalizing on merger and acquisition opportunities. This sale of Cowlitz, is the latest in a string of similar deals designed to improve shareholder returns.

Earlier this year the company purchased Eleusian Biosciences Corp. This strategic acquisition furnishes Lobe with a host of development opportunities focused on mental wellbeing and optimal brain health.

The company’s efforts are split between the development of psychedelic medicines and the creation of devices to deliver these life-changing compounds. It has begun a study treating mTBI (concussion) using psilocybin and N-Acetylcysteine in collaboration with a team of scientists at the prestigious University of Miami Miller School of Medicine.

Concussion is a much more common occurrence than previously believed. It also contributes to several negative health outcomes. The Centers for Disease Control (“CDC“) estimates there are over 230,000 hospitalizations due to concussion each year plus 3 million emergency room visits. It’s thought around 5.3 million Americans are suffering side effects from mTBI, which is a jaw dropping 53% increase from a decade ago. The World Health Organisation (WHO) has even called it a silent epidemic. Sadly, there are no proven treatments for this or PTSD, so it’s a worthy area to be occupied. Therefore, Lobe hopes the results of this study will lead to human clinical trials and eventually therapeutics, which will drastically change millions of lives for the better.


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