The Week’s Largest Closed Equity Transaction:

• On March 15, 2023, Zelira Therapeutics Ltd (ZLD: AUX)(ZLDAF: OTCQX), an Australian based Biotech company focused on R&D and development of cannabinoid medicines and product commercialization, raised $1.17M from U.S. Investors.
• 77M shares were sold at $.66 per share, approximately a 3% discount to the 15-day VWAP and equal to the stock’s last closing price.
• The issue implied a market cap and enterprise value of $47.6M and $46.5M, respectively. The company is pre-revenue and trades at approximately 2.0x book value, a metric that corresponds closely to the 2.09x market/book ratio we observe for the 9 Biotech companies in the Viridian Value Tracker database with market caps between $25-100 and annualized revenues less than $20M.
• Proceeds will help fund the company’s clinical trial program. Zelira’s free cash flow adjusted current ratio of -4.4x indicates a significant need for additional financing, primarily due to its approximately $5M negative annualized cash flow from operations.

Public vs. Private Raises: 

• Three of this week’s four capital-raising companies are public. All three trade in the U.S. on OTC. In addition, one trades on the Australian exchange, one on the London exchange, and one in Canada on the TSX.

Equity vs. Debt Cap Raises: 

• Equity accounted for 41.9% of the capital raises this week.