Zelira Therapeutics Ltd (ASX:ZLD) (OTCQB:ZLDAF) (FRA:G1G) has entered into a binding licensing agreement with Alternative Solutions LLC to manufacture and distribute Zelira’s HOPE™ products in the Washington DC approved medical cannabis market.
Alternative Solutions will commercialise Zelira’s HOPE™ products for sale in the second quarter of 2021.
Under the terms of the licensing agreement, Zelira will receive an upfront fee and ongoing royalties from HOPE™ product sales in Washington DC.
Gateway state with over 24 million visitors
Zelira chief executive officer and managing director USA Dr Oludare Odumosu said: "Our partnership with Alternative Solution, a leader in the Washington DC market, is a strategic move in line with our mission of working with market leaders in approved markets to expand access to HOPE™ across the USA.
“We are particularly excited about this partnership because Washington DC is a gateway state with over 24 million visitors passing through the US capital in a year.
“Washington DC’s reciprocity is a strategic move that allows approved patients from 32 states to legally access HOPE™ in DC.”
Legal, regulated medical cannabis program
Alternative Solutions chief executive officer Matt Lawson-Baker added: “Alternative Solutions is thrilled to be partnering with Zelira to bring the HOPE™ product line to the Washington DC medical cannabis market.
“Providing access to this medicine in the nation’s capital will give many families and patients the treatment they deserve through a legal regulated medical cannabis program.”
Focussed on distribution expansion
Washington DC has reciprocity with 32 other states in the US, with approved medical cannabis programs.
This expands access to patients registered in all the 32 states, as they can legally purchase medical cannabis products at an approved dispensary in Washington DC.
Zelira previously licensed HOPE™ in Pennsylvania to Ilera Healthcare LLC, which holds the licence for that state and in Louisiana to Advanced Biomedics LLC.
Zelira remains focused on expanding the distribution of HOPE™ through licensing agreements in each approved market across the US next year, as the COVID-19 pandemic gets under control.
Alternative Solutions is one of eight current licence holders for the cultivation, processing and distribution of cannabis within the District of Columbia.
The company is licensed to distribute medical cannabis products to all seven licensed MMJ dispensaries within the district.
Operational since 2015, Alternative Solutions focuses on providing a consistent supply of premium products to all licensed dispensaries in DC.