Zelira Therapeutics shares more than doubled after the company secured a US$32.98 million (A$49.28m) capital raise into its HOPE 1 special purpose vehicle (SPV).
Biotechnology fund ThirdGate Capital committed the funds and will take a 50% stake in the HOPE 1 SPV. Zelira holds 39.7%, with the remaining interest split between existing investors and management.
HOPE 1 is Zelira's primary cannabinoid-based drug candidate, targeting Phelan-McDermid Syndrome, a rare genetic condition that falls within the autism spectrum.
The investment gives the SPV a post-money valuation of US$65.96m (A$98.57m).
Investors responded strongly to the news, with Zelira's ASX-listed shares rising from an opening price of $0.42 on Friday morning to $0.95 by Monday afternoon — a climb of more than 120%.
Zelira chief executive Dr Oludare Odumosu said the funds would fully finance the company's accelerated US Food and Drug Administration development pathway for the drug.
"This transformative fundraising directly into the HOPE 1 SPV represents
a compelling endorsement of our vision, our science, and the significant
potential of HOPE 1," he said.
ThirdGate Capital senior partner Cynthia Parrish said the firm was eager to work alongside Zelira in advancing HOPE 1 through the FDA approval process.
"The compelling real-world patient data, combined with the clear regulatory pathway…
gives us confidence in HOPE 1's potential to address a significant unmet need for patients with Phelan-McDermid Syndrome and autism spectrum disorder," she said.
The raise was expected to formally close by 31 January 2026.
