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Excited About 2024 After a Breakout 2023

Water Tower Research hosted CEO and Co-Founder Ben Lightburn in a fireside chat on April 4, 2024. Lightburn discussed the latest developments in Filament’s drug development programs, expansion into new markets, financial strategy, and milestone targets in 2024. This report contains a transcript of the conversation, which can be accessed on demand. Link is accessible in our full report. 2023 achievements highlighted; progress continues in 2024. More important than quintupling its reported revenue to C$2.1 million in 2023, Filament hit significant milestones in its drug development programs. Notably, the company received US and Canadian regulatory approvals to conduct Phase II studies of its lead botanical psilocybin-based candidate, PEX010, for the treatment of substance abuse disorders, specifically stimulant use disorders [methamphetamine (MAUD) and other StUDs] and opioid abuse disorder (OUD). Progress continued in 1Q24, with the successful opening of an Investigational New Drug (IND) by the FDA for the Phase II PEX010 study for OUD, which had been approved by Health Canada in 2023. Expansion into new markets. Filament has also been advancing its strategy of expanding into new markets this year. In the first quarter, the company completed the first ever shipments of botanical psilocybin to Australia and Israel to be studied for a range of mental health indications. Filament also shipped PEX010 to the United States and Belgium for clinical investigation. Remarkably, PEX010 is currently authorized for investigation in 30 clinical trials worldwide for 13 indications, a feat to the best of our knowledge is unrivaled by any other psychedelics drug developer. Uplisting remains on the agenda. While Filament’s share price performance since the collapse of its proposed SPAC merger reflects disappointment from the outside, the termination was instigated by Filament due to unfavorable changes in term proposals as the deal progressed. From a strategic and financial perspective, uplisting to a major US exchange remains a priority for the company. A number of alternative options are under consideration, some of which the company is actively pursuing. In any event, the disappointment from the outside ignores the value of Filament’s robust intellectual property portfolio and significant potential held by its drug candidates. Excited about 2024. The sharpened focus on substance abuse disorders represents a significant opportunity for the company’s botanical products led by PEX010, as Filament implements its plans to enroll patients for its approved clinical trials this year. Top-line data from the OUD study should be available within the year, while results from the larger, controlled MAUD/StUD studies will be a little further out.