Zelira Therapeutics Ltd (ASX:ZLD) (OTCMKTS:ZLDAF) has welcomed a $2 million strategic investment from Thorney Investment Group that has resulted in Thorney becoming a substantial shareholder in the company with a 5.2% stake.
Under a private placement to the institutional investor, Zelira will issue 37.037 million new shares at an issue price of 5.4 cents per share, representing a discount of 11.8% of the 15-day volume-weighted average price (VWAP).
Subject to shareholder approval at Zelira’s annual general meeting in November, the company will also issue Thorney a one-for-one free attaching unquoted option, exercisable at 7 cents and expiring two years from the date of issue.
“Accelerating path to commercialisation”
The investment is part of Zelira’s deliberate strategy to increase institutional ownership of the company.
Zelira chairman Osagie Imasogie said: “Zelira is delighted to welcome Thorney Investment Group as a substantial investor in the company.
“With a strong balance sheet and a supportive strategic partner, Zelira is well-positioned to accelerate its path to commercialisation in global markets.”
Funds raised will be used to accelerate the commercialisation of the company’s portfolio of medicinal cannabis products.
Thorney Investment Group chairman Alex Waislitz said: “While the global medicinal cannabinoid sector has many entrants, we believe Zelira is well-placed with its life science approach to take advantage of multiple opportunities in multiple jurisdictions.
“The strategic focus on intellectual property protection, together with its capital-light business model we believe positions the company strongly as it commences revenue generation.”