Devonian Health Taps New CFO, Navigates Financial & Regulatory Reset

QUÉBEC, CANADA – February 02, 2026 – Devonian Health Group Inc. (TSXV: GSD, OTCQB: DVHGF) announced a significant leadership change today, appointing seasoned biopharmaceutical executive Dennis Turpin as its new Chief Financial Officer. The move comes as the clinical-stage company simultaneously addresses complexities in its capital structure, issuing corrections to recently granted stock options following a major share consolidation.

These developments signal a pivotal moment for Devonian, a company balancing a promising pipeline of anti-inflammatory treatments against considerable financial and regulatory challenges, including an outstanding cease trade order on its Canadian-listed shares.

A New Hand on the Financial Helm

Effective immediately, Dennis Turpin takes over the CFO role from Viktoria Krasteva, who will remain until February 27 to ensure a smooth transition. Mr. Turpin, a Chartered Professional Accountant (CPA), is no stranger to Devonian, having already served on its Board of Directors and as Chair of the Audit Committee. That role will now be filled by board member Pierre Labbé.

Turpin brings over 25 years of experience in the biopharmaceutical industry, with a deep background in finance, capital markets, and mergers and acquisitions. This specific expertise is critical for a clinical-stage company like Devonian, which is navigating the capital-intensive process of drug development.

"I am pleased to welcome Dennis and confident that he will help strengthen our management approach, diversify our perspectives, enhance our collective expertise, and help guide the development of Devonian," said Dr. André P. Boulet, the company's Chief Executive Officer, in a statement. As part of his appointment, Mr. Turpin was granted 25,000 stock options exercisable at $11.50 per share.

His appointment is seen as a move to bolster financial governance and strategic oversight at a critical juncture. The company has been operating under a cease trade order (CTO) issued by Quebec's Autorité des Marchés Financiers (AMF) in April 2025, which halted trading of its securities in Canada due to delayed financial filings. While Devonian has stated its intention to remedy the situation, the CTO underscores the regulatory hurdles the new CFO will be tasked with navigating.

Untangling a Complex Capital Structure

Concurrent with the CFO announcement, Devonian issued a detailed correction regarding stock options granted on December 19, 2025. The company clarified that the exercise price for nearly 3.5 million options granted to directors, employees, and consultants was corrected from $0.18 to $0.19 per share. This seemingly minor adjustment was necessary to comply with exchange rules that prohibit setting option prices below the market closing price on the day before the grant.

This correction is further complicated by a 1-for-60 reverse share consolidation that the company executed on January 22, 2026. The consolidation, which reduced the number of outstanding shares from approximately 165.9 million to 2.8 million, was aimed at increasing the per-share price to attract a broader investor base and potentially facilitate a future U.S. stock exchange listing.

As a result of this consolidation, the corrected option exercise price has been adjusted to $11.40 per share on a post-consolidation basis. For stakeholders, this series of announcements represents an effort by the company to clean up its books and ensure its equity compensation practices are transparent and compliant, a foundational step for rebuilding investor confidence and attracting new capital.

Balancing Clinical Promise with Financial Reality

Mr. Turpin's arrival and the capital structure adjustments come as Devonian faces a shifting financial landscape. The company reported being debt-free with $7 million in cash as of its last fiscal year-end on July 31, 2025. However, it also posted a net loss of $6 million, largely driven by a non-cash goodwill impairment charge related to its distribution subsidiary, Altius Healthcare LP.

Significantly, the distribution agreement for Dexlansoprazole, a product that accounted for 93% of Altius's $23.6 million in revenue, expired in April 2025. This creates a substantial revenue gap that places even greater emphasis on the success of Devonian's core pharmaceutical pipeline.

The company's future rests on its proprietary drug candidate, Thykamine™, an anti-inflammatory and anti-oxidative agent being developed for a range of fibroinflammatory diseases. The program has shown considerable promise, providing a beacon of potential value amid the financial noise.

A Phase 2 trial of a Thykamine™ cream for adults with mild-to-moderate atopic dermatitis successfully met its primary endpoint, showing statistically significant improvement in skin clearance. The drug was well-tolerated, paving the way for a planned Phase 3 trial. Similarly, a Phase 2a trial in patients with mild-to-moderate ulcerative colitis demonstrated positive results, showing a reduction in key inflammatory biomarkers.

With a strengthened financial leadership team, Devonian aims to secure the funding necessary to advance these promising candidates through late-stage trials and toward commercialization. The ability of the new CFO to navigate the current regulatory issues, manage the cash burn, and articulate a clear financial strategy to investors will be paramount to unlocking the therapeutic and commercial potential of Thykamine™.