morning traders 21 March, page-80

ZLD ann. new licence (posted for those that cant access it yet) trading back at 10:52

New Licence Agreement Increases Flexibility To Expand Clinical Trial Programme • New Caziwell Licence Agreement replaces existing agreement • Zelda maintains exclusive access to patient data, formulations and protocols for use in its current research activities • Positive impact on cashflow, with an immediate $200,000 saving • Permanent reduction in future royalty and sub-licence fees • Significantly increases flexibility to expand clinical trial programme Zelda Therapeutics Ltd (ASX: ZLD, “Zelda” or the Company) announced today the execution of a new licence agreement with Caziwell Inc, including Aunt Zelda’s Inc (Caziwell Licence Agreement or the “Agreement”). This new Agreement provides significant immediate and long-term financial benefits for the Company and replaces the existing agreement previously disclosed to the market. The original licence agreement was put in place to provide Zelda Therapeutics with exclusive access to patient data concerning the medicinal properties of cannabis formulations and protocols, for the Company’s use in pre-clinical and human clinical trials and related activities. A review of this agreement was undertaken in line with the Company’s policy for continuous improvement and delivering value for shareholders, resulting in a restructure of the agreement terms. The new Caziwell Licence Agreement maintains Zelda’s exclusive access to patient data, formulations and protocols for use in the Company’s current pre- clinical research activities in cancer and clinical research activities in sleep disorder and dermatology conditions. The Agreement also significantly increases the Company’s flexibility to pursue other clinical stage opportunities. Furthermore, the Agreement provides for a significant permanent reduction in future royalties payable being 5% of net sales (reduced from 10%) and 10% of any sub-licence fees (reduced from 25%). A one-off fee payment of $300,000 will be made resulting in the elimination of future milestone payments for sleep and dermatology-related clinical trials and allowing Zelda to in-license third party programmes with no further financial obligations to Caziwell. This significantly increases the Company’s ability to take advantage of an ever-expanding portfolio of opportunities and removes the financial burden to Zelda. These changes result in an immediate short term saving to Zelda of $200,000 over the course of 2017, given the Company would have had an obligation to pay two clinical trial milestone fees for its proposed sleep disorder and dermatology clinical trials. The new Caziwell Licence Agreement will assist Zelda Therapeutics to achieve its research focus while creating more value by reducing financial obligations and providing an avenue for the Company to seek new growth opportunities.