Dr. Ahmad Doroudian reports

BETTERLIFE PHARMA SECURES CAD $2 MILLION IN NEW CAPITAL TO COMPLETE BETR-001 FDA IND FILING

Betterlife Pharma Inc. has closed a $2-million convertible debenture financing. The debenture will finance the remaining IND-enabling work on the company's lead candidate, BETR-001, as Betterlife sharpens its focus on neurological pain indications, with an initial emphasis on cluster headache and migraine.

The financing is the first capital deployed since the company appointed Doug Drysdale as executive chairman and director on May 13, 2026. Mr. Drysdale, formerly chief executive officer of Cybin Inc., led that company from molecule inception to phase 3 trials in three years, and previously built Alvogen Inc. and led turnarounds at Pernix Therapeutics and Tedor Pharma over a 35-year operating career.

The financing. The debenture carries interest of 10 per cent per annum and matures on June 1, 2027. The principal is convertible at the holder's option at six cents per unit, with each unit comprising one common share and one share purchase warrant exercisable at 10 cents for three years from issuance.

Use of proceeds. Net proceeds will support completion of remaining IND-enabling activities for BETR-001 and general working capital as the company progresses toward an investigational new drug filing.

Pipeline. BETR-001 is a non-hallucinogenic, second-generation LSD-derivative molecule. Betterlife holds a USPTO composition-of-matter patent on BETR-001, has completed its FDA pre-IND meeting, and has completed most required IND-enabling studies. The company is concentrating near-term development on neurological pain, with an initial emphasis on cluster headache and migraine.

"This capital keeps BETR-001 moving toward the clinic. Our plan is straightforward. Focus the program on a defined set of neurological pain indications, complete the IND-enabling work and file. I have built and run programs that reach the clinic on tight timelines, and that is the discipline we are bringing here," said Doug Drysdale, executive chairman of Betterlife.

"This financing strengthens our balance sheet and lets us keep BETR-001 moving without distraction. With strengthened leadership and the focus to drive the program toward an IND filing, we are concentrating our efforts where the science and the unmet need are clearest. We are grateful for the continued support of our shareholders," said Dr. Ahmad Doroudian, chief executive officer of Betterlife.

A director and insider of the company subscribed for $2-million of the debenture. Conversion by the related party will be subject to a 19.9-per-cent ownership cap absent shareholder approval. The participation of the related party constitutes a related party transaction as defined under MI 61-101. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the transaction does not exceed 25 per cent of the company's market capitalization. The company has closed this financing without filing a material change report more than 21 days before the closing as the company wished to secure the financing as soon as terms were settled.

All securities issued in connection with the financing is subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws.

The company also announces it has issued 100,000 common shares for services provided by a corporate adviser. The company also granted 3.25 million stock options to officers, with exercise price of 6.5 cents, quarterly vesting over 24 months and expiry date of June 15, 2036.

About Betterlife Pharma Inc.

Betterlife Pharma is a biotechnology company developing compounds for the treatment of neurological and neuro-psychiatric disorders. Its lead candidate, BETR-001, is a non-hallucinogenic LSD-derivative molecule in preclinical development.

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