- Zelira Therapeutics (ZLD) has received US$250,000 (A$348,000) for its technology which enables the enhanced dissolution of cannabinoids
- The company expects to receive the full US$1 million upfront, non-refundable, non-contingent licence payment from DRCN this quarter
- Under the licensing deal, DRCN has 3 years to develop up to 3 commercial products using the technology, with Zelira to receive a 20% royalty from a minimum of US$1 million (A$1.39 million) of net sales per annum
- The milestone for Zelira’s Performance Rights have been met, and are expected to be converted into fully-paid ordinary shares shortly.
- Shares in Zelira were 9.7 per cent higher at 3.4 cents at 12:30pm AEDT.
Zelira Therapeutics (ZLD) has received US $250,000 from DRCN for its technology which enables the enhanced dissolution of cannabinoids via an enhanced distillate capture and dissolution matrix (EDCDM.)
Zelira previously had demonstrated enhanced dissolution of cannabinoids using its
EDCDM and signed a foundation licensing deal for the proprietary technology.
DRCN is a privately held, vertically integrated company with controlling interest in several West Virginian cannabis companies.
Zelira expects to receive the full US $1 million upfront, non-refundable, noncontingent license fee this quarter.
The foundational licensing deal for Zelira’s EDCDM technology was signed with DRCN in November last year.
Under the deal, DRCN can develop up to 3 commercial products using the EDCDM technology.
DRCN has 3 years to exercise product development options, with a possible 2-year extension.
Zelira or DCRN can cancel the license if the products don’t generate a minimum US$1 million in Net Sales each year (after commercialisation.)
Zelira will receive a 20% royalty on Net Sales from commercialised products created under the license.
Zelira Therapeutics Global Managing Director and CEO, Oludare Odumosu, said the company is delighted to be partnering with DRCN.
“Partial receipt of the upfront, non-refundable, non-contingent fee strengthens Zelira’s cash position allowing us to continue to accelerate our prescription (Rx) and Over The Counter (OTC) businesses and commercialisation strategies,” he said.
Odumosu added that the deal highlights the importance of Zelira’s technology.
“The licensing arrangement with DRCN is evidence of the value partners place on Zelira’s technology to solve issues impacting the wider acceptance and usage of cannabinoid-based medicines – the difficulty in formulating solid oral dosage drugs with distillate, and the low rate of dissolution into the body from capsules and tablets.”
Additionally, the milestone for Zelira’s 393,870,322 Class A Performance Rights have now been met.
The milestone was for Zelira to receive US$1 million in cumulative revenues from US-based sales of Ilera Therapeutics products within 5 years of the Performance Rights’ date of issue.
The Performance Rights are expected to be converted into fully paid ordinary shares shortly.
Shares in Zelira were 9.7 per cent higher at 3.4 cents at 12:30pm AEDT.