Zelira Therapeutics (ASX:ZLD) A 170% Surge Backed by Smart, Non-Dilutive Funding

External Validation Sends Shares Flying

Zelira Therapeutics shares surged as much as 172% intraday, before settling around 73.5 cents, following a major funding announcement that the market clearly interpreted as far more than just another capital raise.

The company announced that its HOPE 1 special purpose vehicle had secured approximately US$33 million in committed capital from a single institutional biotech investor, Thirdgate Capital. Importantly, this funding sits outside Zelira itself and is not near-term revenue. Instead, it represents a dedicated pool of capital specifically structured to advance the company’s FDA clinical pathway.

There are two key signals investors should focus on here. First, this level of commitment from a specialist biotech fund is a strong external validation of Zelira’s clinical strategy. Thirdgate Capital is effectively underwriting the regulatory journey, which suggests a high level of confidence in the quality of the underlying data and the probability of progressing through FDA approval.

Second, and just as critical, the funding is non-dilutive. The capital was raised within an SPV rather than through the issuance of new Zelira shares. For existing shareholders, this structure materially reduces financing risk while preserving ownership upside, something that is rare in early-stage biotech.

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Why Investors Rushed In After This Announcement

It is also important to understand how the economics and ownership are structured under this funding arrangement.

Under the HOPE 1 SPV, Thirdgate Capital will hold a 50% economic interest, while Zelira retains a 39% stake. Existing Zelira shareholders maintain a 5.4% interest, and a further 4.9% is allocated to a management investment pool. This structure ensures Zelira remains meaningfully exposed to the upside, while bringing in a specialist partner to fund and execute the clinical pathway.

The approximately US$33 million in committed capital is fully earmarked for clinical development. Around US$17.7 million is allocated to Phase 1 and Phase 2 clinical trials, with a further US$14.1 million directed toward Phase 3 studies as part of the FDA approval process.

What does this company do?

For investors new to Zelira Therapeutics, it is worth stepping back and understanding what the company actually does and where the long-term value is coming from.

Zelira is a biopharmaceutical company focused on the clinical validation of prescription cannabinoid-based medicines. Its core strategy is to move beyond over-the-counter wellness products and instead build regulated, prescription-based therapies backed by clinical data.This early traction is important. Prescription cannabis in Australia has grown rapidly in recent years, helping validate both patient demand and physician willingness to prescribe regulated cannabinoid therapies. Zelira is now looking to extend this commercial footprint into Germany through a commercial partner.

Looking longer term, the key value driver for the company is the HOPE 1 program. This is an investigational therapy targeting Phelan-McDermid Syndrome, a rare genetic form of autism with significant unmet medical need. If successful, HOPE 1 has the potential to position Zelira well beyond a traditional medical cannabis company and into the rare disease biotech space