Biopharmaceutical company Zelira Therapeutics (ASX:ZLD) has raised $1.77 million through US-based investors in a placement to provide additional working capital funding for Zelira to further progress its ongoing strategy of multiple shots on goal’ for its proprietary formulations.

The company says the placement of over 1.77 million fully paid ordinary shares were issued at $1 per share with no fees payable on the placement.

Settlement is expected to occur on 17 March 2023 with the shares being issued on or around the same date. Zelira also notes 820,039 placement shares will be issued pursuant to ASX Listing Rule 7.1, and 950,000 shares will be issued pursuant to ASX Listing Rule 7.1A and accordingly will not require shareholder approval.

Commenting on the capital raise, Zelira Therapeutics Chief Executive Officer (CEO) Dr Oludare Odumosu said: “We are very pleased with our successful capital raise, thank our existing investors that participated, as well as welcome new US-based investors onto the company’s register.

This support reflects ongoing confidence by investors in our various strategies and the progression of our efforts to build meaningful long-term value for our investors, shareholders, and patients.”

Zelira reports the funds raised will be used to provide additional working capital for the company to further progress its ongoing strategies of ‘multiple shots on goal’ for its proprietary formulations such as HOPE 1, through formal Food and Drug Administration (FDA) clinical trials.

The company also notes the placement represents a 3% discount to the 15-day volume weighted average price (VWAP) of Zelira shares as at 10 March 2023, and is equal to the company’s last closing price of $1.

Zelira Therapeutics is a biopharmaceutical company focused on researching, developing, and commercialising clinically validated cannabinoid-based medicines.

The company owns a portfolio of proprietary revenue generating products and a pipeline of candidates undergoing clinical development. These products are designed to treat a variety of medical conditions including insomnia, autism, and chronic non-cancer pain.