Zelira Therapeutics Enhances Capital Strength and Advances Clinical Pipeline

April 29, 2025 05:59 PM AEST | By Team Kalkine Media

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Zelira Therapeutics Enhances Capital Strength and Advances Clinical Pipeline — Image source: Shutterstock

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Highlights

Zelira secures over $1 million through R&D tax refund

Establishes new equity funding avenue via ATM facility

Completes debt-to-equity conversion, enhancing balance sheet

Zelira Therapeutics (ASX:ZLD) has taken several strategic steps to enhance its financial flexibility and advance its pipeline of cannabinoid-based therapies. The biotechnology company recently secured a $1.153 million R&D Tax Incentive refund from the Australian Government, representing a significant injection of non-dilutive capital. These funds are expected to bolster the company's ongoing development programs and operational requirements, providing a strong foundation for its upcoming initiatives.

In addition to this refund, Zelira has implemented a $1 million At-the-Market (ATM) equity facility. This facility grants access to capital in a cost-efficient manner, allowing the company to draw on equity over a 12-month period without the need for immediate large-scale issuance. The ATM mechanism offers Zelira strategic flexibility to manage its funding needs as opportunities and milestones arise.

Further strengthening its capital position, Zelira finalized the complete conversion of US$3.25 million in convertible notes into equity within its HOPE® 1 Special Purpose Vehicle (SPV). This transaction significantly reduces debt on the balance sheet and enhances the company’s equity position, aligning with its strategy to support long-term growth and sustainability.

Progress on Therapeutic Innovations

On the operational front, Zelira is making steady progress in the development of capsule formulations for its leading candidates, HOPE® and Zenivol®. These are being developed using the company’s proprietary Zyraydi™ technology, which is designed to enhance the bioavailability and effectiveness of cannabinoid-based therapies. The rollout of this technology remains on track, with key formulation milestones anticipated between mid to late 2025.

Zelira remains focused on rigorous execution across its clinical programs. Key preparations are underway for the U.S. FDA clinical trial of HOPE® 1. The company has intensified collaboration with its Contract Research Organization (CRO) to refine the study design in accordance with regulatory feedback. These steps reflect a disciplined and strategic approach to advancing the clinical development pipeline.

Zelira (ZLD) is positioning itself for sustained growth through a balanced focus on innovation and financial discipline. By securing multiple sources of funding and reducing debt, the company is not only safeguarding its operational runway but also accelerating its progress toward key clinical and commercial milestones. As development of the Zyraydi™ platform advances, Zelira remains aligned with its mission to deliver differentiated cannabinoid-based solutions to the global market.

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