- Zelira Therapeutics (ZLD) secures US$8.6 million (A$12.3 million) in cornerstone funding from a US-based investor to support its HOPE clinical trials
- Cantheon Capital will provide the funding via a convertible note arrangement to help Zelira conduct phase two and three clinical trials for its HOPE 1 product through a special-purpose vehicle (SPV)
- As part of the deal, Zelira will contribute its HOPE 1 product, IP and real-world data to the SPV, in which it will hold a 55 per cent equity ownership
- Cash investors will contribute a total of US$35 million to fund the SVP and US FDA trials in exchange for a 45 per cent cumulative equity interest in the SVP
- Zelira Therapeutics shares are trading at $1.20 at midday AEDT
Zelira Therapeutics (ZLD) has secured US$8.6 million (A$12.3 million) in cornerstone funding from a US-based investor to support its HOPE clinical trials.
The company said it had received a binding term sheet from Cantheon Capital to provide the initial funding for Zelira to conduct phase two and three clinical trials for its HOPE 1 product via a special purpose vehicle (SPV).
As part of the deal, Zelira will contribute its HOPE 1 product, IP and real-world data to the SPV, in which it will hold a 55 per cent equity ownership.
Cash investors will contribute a total of US$35 million (A$50 million) to fund the SVP and US FDA trials in exchange for a 45 per cent cumulative equity interest in the SVP.
Zelira will manage the SVP as part of its business platform.
Cantheon’s term sheet represents 25 per cent of the total US$35 million US FDA trial cost to be raised for the SVP. The US$8.6 million will come in the form of a convertible note that can be converted to a maximum of 12.93 per cent of the SPV’s common stock.
“As global investors in this space, we are excited to have the opportunity to fund a product that already has a considerable amount of real-world data for safety and efficacy, with millions of doses having been dispensed to patients over several years before the start of formal FDA clinical trials,” Cantheon Capital General Partner Aaron Ray said.
Zelira has also executed a mandate with SW4 Advisors to raise the remaining US$26 million (A$37.2 million) required for the SVP, on standard commercial terms.
Zelira is a global biopharmaceutical company focused on developing and clinically validating branded cannabinoid-based medicines for the treatment of a variety of medical conditions including insomnia, autism and chronic non-cancer pain.
Zelira Therapeutics shares were trading at $1.20 at midday AEDT.