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Zelira Therapeutics Limited (ASX:ZLD), an Australian therapeutics company listed on the ASX, has applied for the quotation of 1,250,000 new fully paid ordinary shares after converting convertible notes from its ZLDAM security class. The conversion took place on 28 June 2026, with the shares issued on 1 July 2026 at a price of USD 0.40 per share. This transaction increases Zelira's total quoted ordinary shares to 13,147,155 and highlights continued activity within the company’s convertible note program. Investors monitoring dilution and capital structure should note that 2,830,270 convertible notes remain outstanding in the ZLDAM class, indicating potential for further conversions.
Key Points
- Company: Zelira Therapeutics Limited (ASX:ZLD)
- Quotation applied for 1,250,000 fully paid ordinary shares following ZLDAM convertible note conversion
- Conversion date: 28 June 2026; shares issued on 1 July 2026 at USD 0.40 per share
- Total quoted ordinary shares post-issuance: 13,147,155
- Outstanding securities include 2,830,270 unquoted ZLDAM convertible notes and 1,245,000 unquoted options with varying expiry dates and exercise prices
- Investors should monitor future convertible note conversions and company updates on capital management
Zelira Therapeutics Completes ZLDAM Convertible Note Conversion on 28 June 2026
Zelira Therapeutics Limited has formally requested ASX quotation for 1,250,000 new fully paid ordinary shares resulting from the conversion of securities under the ZLDAM convertible note class. According to the company’s announcement lodged on 1 July 2026, the conversion occurred on 28 June 2026, with both the initial and final conversion dates recorded as the same day, indicating a single conversion event rather than multiple stages.
The newly issued shares rank equally in all respects from their issue date with existing ordinary shares traded under the ZLD code on the ASX. Holders of these shares have the same rights and entitlements as existing shareholders immediately upon issuance, with no restrictions or ranking differences noted in the company’s update.
Conversion Price Set at USD 0.40 Reflects USD-Denominated ZLDAM Notes
A notable detail of this conversion is the USD 0.40 issue price per share, reflecting that the convertible notes are denominated in US dollars rather than Australian dollars. This foreign currency denomination adds a foreign exchange element to Zelira’s financing arrangements.
The conversion tranche of 1,250,000 shares at USD 0.40 each implies a gross value of USD 500,000. However, Zelira did not disclose the total face value of the ZLDAM note program, the original issuance terms, applicable interest rate, or the timeline for the program’s completion. Investors seeking comprehensive details should refer to previous disclosures by Zelira Therapeutics.
Total Ordinary Shares Reach 13,147,155 After Quotation
Following the quotation of the 1,250,000 new shares, Zelira’s total issued and quoted ordinary share capital stands at 13,147,155 fully paid shares, as reported in Part 4 of the Appendix 2A filing. This figure reflects the company’s capital structure after processing this conversion event with the ASX. The filing notes these figures are automatically generated and may not represent the current issued capital if other forms are being processed simultaneously.
This increase of 1,250,000 shares suggests a pre-conversion share count of approximately 11,897,155 shares, assuming no other concurrent changes. This increment is important for shareholders considering dilution, especially given the remaining unquoted securities that could lead to further share issuances.
Outstanding Convertible Notes Total 2,830,270 Post-Conversion
Despite the recent conversion, 2,830,270 ZLDAM convertible notes remain outstanding and unquoted on the ASX, according to the Appendix 2A filing. These notes represent potential future dilution as each may be converted into ordinary shares under the program’s terms.
The company did not disclose the conversion ratio, expiry date, or remaining term for these outstanding notes in this update. Investors interested in the full dilution potential should consult the original ZLDAM note terms from prior Zelira disclosures. The timing and pace of future conversions will be critical for shareholders monitoring Zelira’s share count.
Additional 1,245,000 Unquoted Options Present Further Dilution Potential
Zelira’s capital structure also includes 1,245,000 unquoted options classified under ZLDAA, with varying expiry dates and exercise prices. These options add another layer of potential dilution if exercised before expiration.
The company did not specify exercise prices or expiry dates for these options in this update. Combined with the outstanding convertible notes, these unquoted instruments could significantly increase Zelira’s ordinary share count if converted or exercised. Investors concerned about dilution or capital efficiency should closely follow future disclosures.
ASX Appendix 2A Process for Convertible Note Conversions
ASX-listed companies must lodge an Appendix 2A to apply for quotation of new securities issued through conversions such as notes or options before trading can commence. This administrative step does not constitute a capital raise, strategic announcement, or shift in company direction. Zelira’s lodgement on 1 July 2026 follows this standard procedure after the 28 June 2026 conversion.
The Appendix 2A confirms these securities are not issued under an employee incentive scheme and that shares are directly received by the note holder, indicating an arm’s-length transaction rather than an internal equity incentive. The company did not disclose the identity of the converting note holder in this update.
Implications of the Convertible Note Conversion on Zelira’s Financing
Converting USD-denominated convertible notes into ordinary shares is a common strategy for smaller ASX-listed companies to manage debt without immediate cash repayment. This conversion reduces liabilities by exchanging debt for equity. The impact on existing shareholders depends on the note terms, conversion price relative to market price, and dilution level.
Zelira did not comment on the strategic rationale for this conversion, nor indicate whether it was initiated by the company or note holder. No guidance was provided on cash position, financing needs, or timelines for converting or retiring remaining ZLDAM notes. Investors seeking clarity may await future operational or financial updates.
Share Price Impact and Investor Outlook
The immediate effect on Zelira’s share price is unclear from public information. While such conversions are routine for many small-cap ASX companies, investor reactions vary based on conversion price versus market price, dilution concerns, and company performance sentiment.
Key considerations for investors include the pace of further ZLDAM conversions, treatment of 1,245,000 ZLDAA options, and Zelira’s operational progress in the therapeutics sector. Upcoming milestones may include additional conversion notices or broader management updates on financial and operational status.
Summary of Zelira Therapeutics’ Capital Structure Post-July 2026 Issuance
Following the issuance, Zelira’s capital table comprises 13,147,155 quoted fully paid ordinary shares under the ZLD code, 1,245,000 unquoted options under ZLDAA with varying expiry and exercise terms, and 2,830,270 unquoted convertible notes under ZLDAM. These figures are automatically generated at lodgement and subject to ASX processing of other forms.
The current share count of approximately 13.1 million reflects Zelira’s scale as a listed entity. However, full conversion or exercise of all outstanding notes and options could materially increase the diluted share count. The company has not disclosed the maximum diluted share count or conversion schedule in this update.
