Full Press Release Details
Neurosciences Secures $100M Term Sheet for Exclusive U.S. Rights to ALA-002, a Next-Generation MDMA Therapeutic from PharmAla Biotech
Positions JUNS at the Forefront of Next-Generation MDMA-Based Therapeutics Following President Trump's April 18, 2026, Executive Order
Accelerating Psychedelic Medicine
FL - May 20, 2026 (GLOBE NEWSWIRE) -- Jupiter Neurosciences, Inc. (NASDAQ: JUNS) ("Jupiter" or the "Company"),
a clinical-stage biopharmaceutical company focused on central nervous system disorders and neuroinflammation, today announced that it
has entered into term sheet to acquire exclusive, perpetual United States licensing rights to ALA-002, the lead drug candidate
of PharmAla Biotech Holdings Inc. (CSE: MDMA; OTCQB: MDXXF) ("PharmAla"), a global leader in the research, development, and
manufacturing of novel MDXX-class molecules. Pursuant to the term sheet, Jupiter would make to PharmAla an upfront payment of $3.33 million
comprised of $1.50 million in cash, and $1.83 million in shares of common stock of JUNS at closing of the definitive agreement. The shares
will be subject to a 120-day Lock-up period. The term sheet also provides that additional development milestone payments and single digit
royalties will be paid as the product is developed, approved and commercialized. Closing of the definitive agreement, based on the terms
and conditions set forth in the term sheet, is to occur no more than 90 days from the execution of the term sheet. Pursuant to the term
sheet, Jupiter agreed to deposit $600,000 into an escrow account upon execution of the term sheet, which shall be credited against the
upfront cash consideration payable to PharmAla at closing under the definitive agreement. If the definitive agreement is not executed
within 90 days from signing of the term sheet, PharmAla shall receive all the cash escrowed amount as a reverse termination fee, subject
to fault-based carve-outs and exceptions as set forth in the escrow agreement.
is a patented, non-racemic MDMA formulation recognized by the U.S. Food and Drug Administration ("FDA") as a Novel Chemical
Entity ("NCE"). It has been engineered to deliver materially improved cardiovascular safety and reduced abuse liability compared
to racemic MDMA, while preserving and enhancing the pro-social and therapeutic properties central to MDMA-assisted therapy. PharmAla's
MDMA supply is in active U.S. government-sponsored VA and DHA clinical trials, providing real-world manufacturing support addressing
a $multi-Billion psychedelic therapeutics market targeting millions of Americans with PTSD/anxiety.
April 18, 2026, President Donald J. Trump signed a landmark Executive Order titled "Accelerating Medical Treatments for Serious
Mental Illness," directing the FDA and Drug Enforcement Administration ("DEA") to expand access to investigational
psychedelic therapies. Key provisions of the Executive Order include the Right to Try Pathway: Establishes access to investigational
psychedelic drugs for eligible patients, including Schedule I handling authorizations for treating physicians, Commissioner's
National Priority Vouchers: Issued to psychedelic drugs that have received FDA Breakthrough Therapy designation, enabling expedited
review timelines of 1-2 months vs. the standard 6-12 months, Federal Funding: Allocates $50 million through the Advanced Research
Projects Agency for Health (ARPA-H) to support state and federal psychedelic medicine programs and Cross-Agency Coordination: Directs
HHS, FDA, and the Department of Veterans Affairs to collaborate on data sharing and expanded clinical trial participation for psychedelic
ALA-002, Jupiter is positioning itself within what many analysts now project will become a multi-billion-dollar regulated psychedelic
therapeutics market in the United States alone, with annual sales potential in the early-to-mid 2030s commonly estimated in the approximately
6 billion to 15 billion dollar range, led by MDMA- and psilocybin-assisted therapies for depression, PTSD, and anxiety disorders.
Against this backdrop, a next-generation, non-racemic MDMA NCE such as ALA-002 offers Jupiter an opportunity to participate in the most
advanced and clinically validated segment of psychedelic medicine, where MDMA-assisted therapy is widely expected to anchor one of the
largest and fastest-growing indications in the category as reimbursement, clinic infrastructure, and federal initiatives converge to
support scaled access for U.S. patients.
proposed transaction is strategically aligned with Jupiter's long-term focus on CNS innovation and the development of therapies intended
to address Longevity, brain health, neuroplasticity, and serious neuropsychiatric conditions," said Christer Ros n, Chairman
and Chief Executive Officer of Jupiter Neurosciences. "Substantial time and negotiations with the Pharmala team as well as our initial
due-diligence of ALA-002 convinced us that with exclusive US rights to ALA-002, Jupiter would be adding a highly differentiated Mental
Health asset that complements our broader mission of advancing novel treatments across the CNS landscape."
represents the type of innovative, next-generation asset we believe can play a pivotal role in future neuropsychiatric therapies,"
said Alison Silva, President and Chief Business Officer of Jupiter Neurosciences. "The completion of this transaction would broaden
our strategic reach in CNS and brain plasticity while strengthening our shareholder's equity and create a potential path to build
long-term value through disciplined clinical and regulatory execution in the United States."
has developed ALA-002 with the goal of delivering a differentiated MDMA-based therapeutic candidate for patients who need better treatment
options," said Nicholas Kadysh, Founding Chief Executive Officer of PharmAla Biotech Holdings Inc. "Jupiter's focus on CNS
disorders and its commitment to advancing innovative brain therapies in the United States make this a strong strategic fit for both companies."
Boral Capital, LLC is acting as the sole financial advisor to Jupiter Neurosciences in connection with this transaction.
proposed transaction remains subject to the completion of due diligence, negotiation and execution of definitive agreements, receipt
of all required corporate and regulatory approvals, and other customary closing conditions.
Jupiter Neurosciences, Inc.
Neurosciences, Inc. (NASDAQ: JUNS) is a clinical-stage biopharmaceutical company advancing a therapeutic pipeline targeting central nervous
system disorders and neuroinflammation. The Company's lead program, JOTROL(TM) -- a proprietary, enhanced bioavailability resveratrol
formulation -- is currently in a Phase IIa clinical trial for Parkinson's disease. JUNS also commercializes Nugevia(TM), a consumer
longevity supplement. The acquisition of ALA-002 U.S. rights further strengthens the Company's CNS pipeline by adding a next-generation,
patented psychedelic NCE at a pivotal moment in U.S. regulatory policy. For more information, please visit www.jupiterneurosciences.com.
PharmAla Biotech Holdings Inc.
Biotech Holdings Inc. (CSE: MDMA; OTCQB: MDXXF) is a biotechnology company focused on the research, development, and manufacturing of
MDXX-class molecules. PharmAla is the world's only company currently provisioning clinical-grade MDMA for patient treatments outside
of clinical trials, with a commercial presence through its Cortexa joint venture in Australia -- the only jurisdiction globally where
MDMA is currently approved for prescription by authorized psychiatrists for the treatment of PTSD. PharmAla's LaNeo(TM) MDMA is
supplied into multiple U.S. VA and DHA-sponsored clinical trials. For more information, please visit www.pharmala.ca.
D. Boral Capital, LLC
Boral Capital LLC is a premier, relationship-driven global investment bank headquartered in New York. The firm is dedicated to delivering
exceptional strategic advisory and tailored financial solutions to middle-market and emerging growth companies. With a proven track record,
D. Boral Capital provides expert guidance to clients across diverse sectors worldwide, leveraging access to capital from key markets,
including the United States, Asia, Europe, the Middle East, and Latin America. A recognized leader on Wall Street, D. Boral Capital has
successfully aggregated approximately $30 billion in capital since its inception in 2020, executing ~350 transactions across a broad
range of investment banking products.
press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995 and applicable Canadian securities laws. Forward-looking statements include, without limitation, statements regarding the timing
of definitive agreements with PharmAla, if entered into, the anticipated benefits of the proposed ALA-002 acquisition; expected development
timelines; anticipated regulatory approvals, and the anticipated impact of President Trump's April 18, 2026 Executive Order on
the psychedelic medicine sector and the Company's business. Such statements are based on management's current expectations
and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially, including,
without limitation, that the proposed transaction is subject to the completion of due diligence, negotiation and execution of definitive
agreements, receipt of all required corporate and regulatory approvals, and other customary closing conditions. The forward-looking statements
contained in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk
Factors" in Jupiter's Annual Report on Form 10-K, filed with the SEC on April 1, 2026, and in subsequent filings with the
U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements except as required
by applicable law. Investors are cautioned not to place undue reliance on forward-looking statements.
Rosen, Chairman & Chief Executive Officer
Birch, Media Relations Manager
Jupiter Neurosciences, Inc.
is a trademark of PharmAla Biotech Holdings Inc.