California Biopharma Shows Promising Phase 1 Data
Research Report

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Disclosures for D. Boral Capital, Artelo Biosciences Inc., December 9, 2024

Analyst Certification I, Jason Kolbert, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.

Company-Specific Disclosures General Disclosures This report has been produced by D. Boral Capital LLC and is for informational purposes only. It does not constitute solicitation of the sale or purchase of securities or other investments. The information contained herein is derived from sources that are believed to be reliable. Prices, numbers, and similar data contained herein include past results, estimates, and forecasts, all of which may differ from actual data. These prices, numbers, and similar data may also change without prior notification. This research report does not guarantee future performance, and the information contained herein should be used solely at the discretion and responsibility of the client. Neither D. Boral Capital nor its affiliates accept any liability or responsibility for any results in connection with the use of such information. This research report does not consider specific financial situations, needs, or investment objectives of any client, and it is not intended to provide tax, legal, or investment advice. Clients are responsible for making final investment decisions and should do so after a careful examination of all documentation delivered prior to execution, explanatory documents pertaining to listed securities, etc., prospectuses, and other relevant documents. D. Boral Capital and its affiliates may make investment decisions based on this research report. In addition, D. Boral Capital and its affiliates, as well as employees, may trade in the securities mentioned in this research report, their derivatives, or other securities issued by the same issuing companies in this research report. This research report is distributed by D. Boral Capital and/or its affiliates. The information contained herein is for client use only. D. Boral Capital holds the copyright on this research report. Any unauthorized use or transmission of any part of this research report for any reason, whether by digital, mechanical, or any other means, is prohibited. If you have any questions, please contact your sales representative. Additional information is available upon request. Certain company names, product and/or service names that appear in this research report are trademarks or registered trademarks of D. Boral Capital or other companies mentioned in the report. Copyright 2024 D. Boral Capital LLC. D. Boral Capital rating definitions are expressed as the total return relative to the expected performance of S&P 500 over a 12-month period. BUY (B) - Total return expected to exceed S&P 500 by at least 10% HOLD (H) - Total return expected to be in-line with S&P 500 SELL (S) - Total return expected to underperform S&P 500 by at least 10%

D. Boral Capital analyst Jason Kolbert, in a research report published on December 9, 2024, maintained a Buy rating on Artelo Biosciences Inc. (ARTL:NASDAQ) with a price target of US$6.00. The report follows Artelo's announcement of promising Phase 1 results from its CAReS trial evaluating ART27.13 for cancer-related anorexia.

Kolbert highlighted the trial's success, stating, "Phase 1 results from the CAReS trial showed that ART27.13, a CB1/CB2 receptor agonist, is well tolerated, with only mild to moderate adverse events reported. Importantly, the study demonstrated encouraging efficacy, as two-thirds of patients experienced stabilization or reversal of weight loss — a critical metric for improving outcomes in advanced cancer patients."

The analyst emphasized the market opportunity, noting that "ART27.13's potential as a first-in-class therapy for cancer anorexia and cachexia syndrome could position Artelo as a leader in supportive cancer care." He added that the Phase 2 CAReS trial is "now enrolling at 15 sites across five countries" with "topline data expected in 2025."

Regarding the company's current position, Kolbert noted, "Artelo has just a US$4M market capitalization, which is distressed for a company with a Phase 2 asset in a market with a billion-dollar potential, Cachexia."

D. Boral Capital's valuation methodology combines multiple approaches. Kolbert explained, "We apply a 15% success probability for the Cachexia program and 10% for CIN to our projected revenues, in addition to our 30% risk rate applied in our Free Cash Flow to the Firm (FCFF), discounted EPS (dEPS), and Sum-of-the-Parts (SOP) models."

The share price at the time of the report of US$1.23 represents a potential return of approximately 388% to the analyst's US$6.00 target price.