The Zelira Therapeutics Ltd (ASX: ZLD) share price is firmly in the green today following a positive update for its HOPE products.
At the time of writing, the cannabis company's shares are swapping hands for 5.7 cents, up 7.55%.
What did Zelira announce?
Investors appear upbeat by the company's latest announcement, sending the Zelira share price higher.
According to this morning's release, Zelira advised its HOPE products have launched in Washington DC. Additionally, Zelira noted that this occurred through its partnership with Alternative Solutions.
Alternative Solutions is a licenced grower, manufacturer, and distributor of medical cannabis products. The company operates in the District of Columbia (Washington DC), United States.
Furthermore, both companies entered into an exclusive licence agreement in late 2020 to expand the market presence for Zelira's range of HOPE products.
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.
Zelira stated that HOPE is available at the National Holistic Healing Centre, located near Dupont Circle.
As part of the deal, 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.
In addition, Zelira holds a licencing agreement with Ilera Healthcare LLC and Advanced Biomedics LLC for Pennsylvania and Louisiana, respectively. Management believes that customer adoption and sales will be similar in Washington DC and other markets.
Management commentary
Zelira managing director, Dr Oludare Odumosu hailed the company's success, saying:
The successful launch of HOPE in Washington DC is a huge step forward in Zelira's strategic focus on expanding access to HOPE throughout the USA. We look forward to partnering with Alternative Solutions to support the growth of our product in these new markets.
Alternative Solutions CEO, Matt Lawson-Baker further commented:
We are thrilled to partner with Zelira in bringing HOPE to Washington DC and look forward to bringing patients scientifically formulated medicines they can trust.
Zelira share price snapshot
Since the beginning of 2021, investors have seen the Zelira share price continue to fall in value. Year-to-date performance stands at a loss of more than 40%, reflecting weak shareholder sentiment.
Based on current valuations, Zelira presides a market capitalisation of around $63 million, with close to 1.2 billion shares outstanding.
