- Zelira Therapeutics (ZLD) signs a licensing deal for its Enhanced Distillate Capture and Dissolution Matrix (EDCDM) technology
- DRCN Holding will pay a US$1 million (A$1.35 million) licensing fee for the tech and has three years to develop up to three products
- The contract comes after the ASX-lister successfully demonstrated the enhanced dissolution of cannabinoids using EDCDM
- Company shares are up 10.5 per cent at 4.2 cents each
Zelira Therapeutics (ZLD) has signed a licensing deal for its Enhanced Distillate Capture and Dissolution Matrix (EDCDM) technology.
The medicinal cannabis business will be paid a US$1 million (A$1.35 million) non-refundable, non-contingent licensing fee by DRCN Holding.
The milestone deal comes after the ASX-lister successfully demonstrated the enhanced dissolution of cannabinoids using its EDCDM technology.
Tech breakthrough
Zelira Therapeutics Global Managing Director & CEO Oludare Odumosu said its tech allows the cannabinoids to better dissolve upon consumption.
“Reflecting Zelira’s biopharmaceutical business strategy, we have solved two key issues holding back wider acceptance and usage of cannabinoid medicinal products – the difficulty in formulating solid oral dosage drugs with distillate, and the low rate of dissolution into the body from capsules and tablets,” he said.
“We have now demonstrated that Zelira’s proprietary EDCDM technology substantially traps the distillate in a free flow powder matrix and increases the rate of dissolution.
“This is a very exciting development as it opens multiple product development and commercialisation paths for medicinal cannabinoids.”
Foundation contract
Following the breakthrough, Zelira announced on Wednesday it would be teaming up with the US-based cannabis business.
DRCN will have at least three years to create three products using Zelira’s novel technology under the licensing contract recently signed.
In return, ZLD will receive 20 per cent of any revenue generated from the sales of the products created.
It’s also been promised the products will generate at least US$1 million (A$1.35 million) in net sales each year post commercialisation, or the contract can be cancelled.
“Receipt of the upfront, non-refundable, non-contingent fee under this transaction, will further strengthen Zelira’s cash position,” Mr Odumosu said.
“This puts the company in an increased strong position to continue to accelerate both
our prescription and Over The Counter businesses/strategies.”
Shares in Zelira Therapeutics were up 10.5 per cent at 4.2 cents each at 11:54 am AEDT.