The Zelira Therapeutics Ltd (ASX: ZLD) share price is breaking new records today. This comes after the company announced a new licencing agreement with Alternative Solutions LLC.
Alternative Solutions is a licenced grower, manufacturer and distributor of medical cannabis products in the District of Columbia (Washington DC), United States.
During late morning trade, the Zelira share price hit an all-time high of 14 cents. However, its shares have since pulled back slightly, up 16% to 12 cents at the time of writing. In comparison, the All Ordinaries Index (ASX: XAO) is edging 0.4% higher to 6,911 points.
What did Zelira announce?
According to the release, Zelira advised it has entered an exclusive licencing deal with Alternative Solutions to expand market presence for its HOPE products.
Under the terms of the agreement, Alternative Solutions will manufacture and distribute HOPE products in Washington DC. The expanded medical cannabis market will see sales begin in the second quarter of 2021.
In return, Zelira will receive an upfront fee and ongoing royalties from product sales within Washington DC. The company did not provide any further details regarding the financial aspects of the contract.
Currently, Washington DC has an agreement with 32 other states within the country for approved medical cannabis programs. The mutual exchange allows patients who are registered in the authorised states to legally buy medical cannabis in Washington DC.
In addition, Zelira holds a licencing agreement with Ilera Healthcare LLC and Advanced Biomedics LLC for Pennsylvania, and Louisiana, respectively.
Management commentary
Zelira managing director and CEO Dr Oludare Odumosu commented on the licencing agreement:
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 though 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.
Alternative Solutions CEO Mr 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.
About the Zelira share price
The Zelira share price has performed strongly over the year, gaining more than 500% for patient shareholders. At the time of writing, Zelira shares are up by 16.16%, giving the company a market capitalisation of $117 million.
