PharmaDrug Announces Strategic Review Process Intended to Maximize Shareholder Value

Rhea-AI Summary

PharmaDrug Inc. (OTC: LMLLF) has initiated a comprehensive strategic review process led by a newly formed special committee of independent directors to maximize shareholder value. The committee, supported by management, will evaluate the company's current strategy, assets, research programs, and capital structure. The strategic alternatives under consideration include potential asset and business unit sales, management changes, consolidation of Sairiyo Therapeutics, and capital structure modifications. Despite any potential changes, PharmaDrug remains committed to developing Cepharanthine, their key pharmaceutical product.

Positive

• Formation of independent special committee shows commitment to shareholder value maximization
• Company maintains strategic focus on developing key product Cepharanthine
• Multiple strategic alternatives being considered for value creation

Negative

• Strategic review suggests possible financial or operational challenges
• Potential asset sales and management changes indicate uncertainty in current business model
• Review process may lead to significant restructuring and business disruption

Toronto, Ontario--(Newsfile Corp. - June 6, 2025) - PharmaDrug Inc. (CSE: PHRX) (OTC Pink: LMLLF) ("PharmaDrug" or the "Company"), a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics and previously approved drugs, is announcing that the board of directors ("the Board") has formed a special committee of independent directors to lead a comprehensive strategic review process to consider opportunities to maximize shareholder value.

The Special Committee, aided by the Company's management team, will oversee the evaluation of PharmaDrug's current strategy, assets, research programs and capital structure. The strategic review will consider various alternatives for PharmaDrug. These could include sales and divestiture of assets and business units, change in management, consolidation of Sairiyo Therapeutics and / or changes in the Company's capital structure.

Whatever the outcome, PharmaDrug will retain its focus and commitment to developing Cepharanthine.

About PharmaDrug Inc.

PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics and previously approved drugs. PharmaDrug owns 51% of Sairiyo Therapeutics ("Sairiyo"), a biotech company that specializes in researching and reformulating established natural medicines with a goal of bringing them through clinical trials and the associated regulatory approval process in the US and Europe. Sairiyo is currently developing its patented reformulation of Cepharanthine, a drug that has shown substantial third party validated potential for the treatment of infectious disease and rare cancers. Sairiyo is also conducting R&D in the psychedelics space for the treatment of non-neuropsychiatric conditions. PharmaDrug also owns 100% of SecureDose Synthetics Inc. ("SecureDose"), a pharmaceutical research and development company focused on the development of synthetic formulations of currently existing drugs for potential commercialization and distribution.

For further information, please contact:

Robert J. Steen, Chairman and CEO
rob@pharmadrug.ca
(416) 400-7086

Caution Regarding Forward-Looking Information:

THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of the Company. Forward looking statements in this press release relate to the potential for cepharanthine as a treatment for Mpox and the development of the Company's business. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company's future operations; competition; changes in legislation affecting the Company; the ability to obtain and maintain required permits and approvals, the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals.

A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons", as such term is defined in Regulations under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, are subject to change after such date. However, the Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254674

FAQ

What is the purpose of PharmaDrug's (LMLLF) strategic review process?

The strategic review process is intended to maximize shareholder value by evaluating the company's current strategy, assets, research programs, and capital structure through a special committee of independent directors.

What potential changes is PharmaDrug (LMLLF) considering in its strategic review?

PharmaDrug is considering sales and divestiture of assets and business units, management changes, consolidation of Sairiyo Therapeutics, and modifications to the company's capital structure.

Will PharmaDrug (LMLLF) continue developing Cepharanthine during the strategic review?

Yes, PharmaDrug has explicitly stated it will maintain its focus and commitment to developing Cepharanthine regardless of the strategic review outcome.

Who is leading PharmaDrug's strategic review process?

The strategic review is being led by a special committee of independent directors with support from the company's management team.

What is PharmaDrug's (LMLLF) main business focus?

PharmaDrug is a specialty pharmaceutical company focused on research, development and commercialization of controlled substances and natural medicines, including psychedelics and previously approved drugs.