Global medical cannabis company Zelira Therapeutics (ASX: ZLD)(OTCQB: ZLDAF) has raised a whopping $US5 million (roughly $AU6.6 million) from the US-based family office fund Quincy Street. The deal included:
- $US 2.5 million from 79,908,676 fully paid ordinary shares at $AU0.06 per share (this is a 54% premium on the stock’s last closing price)
- $US 1.5 million via an equity investment into Zelira DermatologyÂ
- 1 unlisted option for every 2 ordinary shares issued for the next two years (exercise price $AU0.09 with 39,954,338 total unlisted options)
As a result of Quincy Street’s investment, the company will hold a 6.3% share in Zelira Therapeutics and a 3% share in Zelira Dermatology (also called “Ilera Derm LLC”). This will bring Zelira’s total to an estimated value of $AU122.8 million.
Zelira will use the funds from Quincy Street in several ways, including in trials and clinical development, licensing for Zelira Rx products, the commercialisation of Zelira’s RAF FIVE product and the expansion of SprinjeneCBD in the US and other markets. According to the company’s founder and chairman, Osagie Imasogie, investing in these projects will help Zelira roll out its growth strategy and reach breakeven by the end of 2022.
The funds raised have not only introduced a new US-based fund onto Zelira’s register, but more importantly, provides us with capital to more aggressively roll out our growth strategy….
Zelira expects to settle the deal on October 22nd and issue shares and attaching options to Quincy Street on or around October 29th, 2021. This is the second large deal Zelira has secured recently, as the company also signed a $4 million deal with IMC to enter the German medical cannabis market.
