Medicinal cannabis company Zelira Therapeutics (ASX:ZLD) has completed a placement of 91,770,000 fully-paid ordinary shares at a share price of $0.05 to Australian and International investors.
The company said the placement will raise $4,588,500 before costs.
According to managing director, Dr Richard Hopkins, “The Placement was strongly supported by existing and new investors both domestically and in the United States. We are delighted to welcome new shareholders to our register and appreciate the ongoing support from our existing shareholders.”
Zelira said the placement will increase the company’s cash position to approximately $5,788,500 million before costs.
"The funds will be used to accelerate Zelira’s plans to launch multiple products into global markets in 2020 and to advance its clinical programmes, including its Insomnia and Opioid Sparing trials, which are due to read-out in the first half of this year," it said.
CPS Capital Group (CPS) was the lead manager to the placement. A fee of 6 per cent will be paid to CPS.
The company said Zelira Director Jason Peterson is a director and shareholder of CPS and may benefit from the fees received by that company.
"The Board (excluding Mr Peterson) are satisfied that the fees payable to CPS are not inconsistent with fees charged for these services by other similar service providers," it said.