The Zelira Therapeutics Ltd (ASX: ZLD) share price is lower during mid-afternoon trade despite announcing a positive trading update.
At the time of writing, the cannabis company's shares are fetching for 5.9 cents, down 1.67%.
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Q3 FY21 quarterly update
Investors appear unfazed by the company's latest snapshot, sending Zelira shares slightly in the negative.
According to its release, Zelira delivered a robust performance for the quarter ending 31 March 2021.
Cash receipts including product sales and licensing payment rose to a record $225,000, reflecting a 249% increase on H1 FY21. The strong growth predominately came from the company's United States launch of its SprinjeneCBD oral care product in December.
Zelira noted that it's planning a suite of new products to be rolled out over the next two quarters. It is expected that this will further amplify growth in sales and create additional revenue streams.
Zelira managing director, Dr Oludare Odumosu hailed the robust result, saying:
The March quarter performance is the strongest quarterly cash receipts reported for Zelira Therapeutics since its inception and clearly demonstrates the start of the Company's revenue ramp up.
Our long-term focus to develop a portfolio of clinically validated and scientifically formulated cannabinoid medicine and consumer products is starting to bear fruit as commercialisation ramps up. We are well placed to build on the March quarter's momentum and accelerate our progress in 2021 as we launch new products and expand into new geographies.
Zelira appointment
Complimenting the result, Zelira highlighted its February address of being appointed to the National Cannabis Roundtable (NCR) board of directors in Washington DC, United States.
Founded in late 2010, the NCR is a trade association focusing on federal cannabis reform in the United States. The group consists of innovators, investors and employers across the entire chain of legal cannabis businesses.
NCR is seeking to decriminalise cannabis at the federal level, ensuring patients and customers have access to state-based cannabis programs.
Zelira appointed Dr Odumosu to represent the company on the NCR board.
CEO of Trulieve and second vice chair of NCR's board of directors, Kim Rivers commented:
We are excited to have Zelira join our growing Roundtable. Their focus on research and health is ground-breaking and will help us showcase the breadth and potential of the cannabis industry as we seek to further reform and grow the legal cannabis industry in the US.
Dr. Odumosu added:
The manner that the federal government handles reform will have fundamental impacts on the people we serve. Zelira is committed to bringing break-through therapeutics to market and we need to have a regulatory framework in place that will allow research to expand and grow on a Federal/National level.
Outlook
Looking ahead, Zelira plans on growing revenues from the multiple products it has across its Australian and United States portfolio. It noted that it is currently progressing licencing discussions for its Hope and Zenivol products in the United States. In addition, negotiations are set to resume in expanding distribution to other markets, particularly Germany and the United Kingdom.
Zelira share price snapshot
Zelira shares have gained around 40% over the past year, but are down 35% since the start of 2021.
Based on the current share price, Zelira has a market capitalisation of roughly $70 million, with 1.19 billion shares outstanding.
