Zelda Therapeutics Share Price Up 2.27%

Shares of Zelda Therapeutics Ltd [ASX:ZLD] climbed over 2% in today’s first half hour of trading. Shares are trading at $0.090 at the time of writing, a 2.27% rise for the day.

The company brings together leading researchers and clinicians in the study of medical cannabis.

What’s happened to Zelda’s medical marijuana testing?

The demand is there. That’s a sure thing.

But it seems the high experienced by many investors is finally starting to wear off. The share price has been falling since early May.

Investors may have bought stock at the hype of medical cannabis legalisation in Australia. And now that the smoke has settled, they’re losing interest.

Their reason for this? Without too much in company-specific news recently, no one really knows. But it’s not unreasonable that Zelda’s gradually declining share price might come from marijuana’s continued illegal status.

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The legalisation of medical cannabis is the core of the company’s market. But, as the larger recreational market is legalised in places like the US and Canada, hype has built around companies like Zelda Therapeutics. But with progress towards full legalisation lagging in Australia, some of that excitement may be wearing off.

After nine US states, and now Canada, took the initiative to legalise recreational marijuana, there’s been an outpouring of support by the public — and in strong economic results. Just look at California, recording $2 billion in cannabis sales.

With greater optimism, the same could be possible for Zelda. Health Minister Greg Hunt is already gearing Australia to be ‘potentially, the world’s number one medicinal cannabis supplier.

Going forward with Zelda

Zelda therapeutics is working towards an alternative treatment option for brain tumours most commonly found in children, medulloblastoma.

The company recently released an update about their collaboration with Telethon Kid, which focuses on pre-clinical testing of Zelda’s compounds. They found that pure cannabis is reducing proliferation of cancer cells, creating an anti-cancer effect.

With the validation of their cell based research, moving forward the research project will be testing Zelda’s full plant extracts in the same way, and aiming to get even better results than shown in the pure cannabis testing.

While it may not come with the level of excitement of full legalisation, further proof of cannabis’ medical benefits could bring investors’ attention back to this stock.

Regards,

Sam Volkering,
Editor, 
Money Morning

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Sam Volkering is an Editor for Money Morning and is small-cap, cryptocurrency and technology expert. He’s not interested in boring blue chip stocks. He’s after explosive investments; companies whose shares trade for cents on the dollar, cryptocurrencies that can deliver life-changing returns. He looks for the ‘edge of the bell curve’ opportunities that are often shunned by those in the financial services industry. If you’d like to learn about the specific investments Sam is recommending in either small-cap stocks or cryptocurrencies, take a 30-day trial of his small-cap investment advisory Australian Small-Cap Investigator here, or a 30-day trial of his industry leading cryptocurrency service, Sam Volkering’s Secret Crypto Network here. But that’s not where Sam’s talents end. Sam specialises in finding new, cutting edge tech and translating that research into how the future will look — and where the opportunities lie. It’s his job to trawl the world to find, analyse, research and recommend investments in the world’s most revolutionary companies. He recommends the best ones he finds in his premium investment service, Revolutionary Tech Investor. Sam goes to the lengths of the globe and works 24/7 to get these opportunities to you before the mainstream catches on. Click here to take a 30-day no-obligation trial of Revolutionary Tech Investor today. Websites and financial e-letters Sam writes for:


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