Rapid Dose Provides Update on Share Issuance in Debt Settlement with Creditors and Proposed Private Placement

Rhea-AI Summary

Rapid Dose Therapeutics (CSE: DOSE) has received an extension from the Canadian Securities Exchange for its previously announced debt settlement transaction. The extension allows the company to close the Shares for Debt Transaction by March 10, 2025. The transaction involves issuing up to 1,600,000 common shares at $0.25 per share to creditors in exchange for canceling approximately $400,000 in outstanding accounts payable.

Additionally, the company announced it will not proceed with the previously disclosed private placement of units (shares and warrants) worth up to $6,000,000 at this time.

Positive

• Debt reduction of $400,000 through share issuance
• Extension granted for debt settlement completion

Negative

• Cancellation of planned $6 million private placement
• Shareholder dilution through issuance of 1.6 million new shares

Burlington, Ontario--(Newsfile Corp. - January 27, 2025) - Rapid Dose Therapeutics Corp. (CSE: DOSE) ("RDT" or the "Company") today announced that further to its press release dated December 9, 2024 (the "Initial Press Release"), announcing a proposed debt settlement (the "Shares for Debt Transaction") with certain of its creditors (the "Creditors") to issue an aggregate of up to 1,600,000 common shares (the "Settlement Shares") at $0.25 per share to such Creditors in exchange for the cancellation of outstanding accounts payable in the aggregate amount of up to $400,000 (the "Debt") owing to such Creditors, the Company has received an extension from the Canadian Securities Exchange allowing it to close the Shares for Debt Transaction on or before March 10, 2025.

For clarity, the Company also announced that it will not be proceeding at this time with the up to $6,000,000 private placement of units (shares and warrants) that was previously disclosed in the Initial Press Release.

About Rapid Dose Therapeutics Corp.
Rapid Dose Therapeutics is a Canadian biotechnology company revolutionizing drug delivery through innovation. The Company's flagship product QuickStrip™ is a thin, orally dissolvable film, that can be infused with an infinite list of active ingredients, including nutraceuticals, pharmaceuticals and vaccines, that are delivered quickly into the bloodstream, resulting in rapid onset of the active ingredient. For more information about the Company, visit www.rapid-dose.com.

Contacts:
Mark Upsdell, CEO
investorrelations@rapid-dose.com
416-477-1052

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Certain information in this news release may contain forward-looking information within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "intend", "may", "should", "anticipate", "expect", "potential", "believe", "intend", "will", "could", "are planned to", "are expected to" or the negative of these terms and similar expressions. Statements containing forward-looking information, including, without limitation, in respect of the delivery of equipment and products using the QuickStrip™ product delivery method, the generation of recurring revenues, the plans, estimates, forecasts, projections, expectations or beliefs of RDT management as to future events or results and are believed to be reasonable based on information currently available to RDT management. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, statements pertaining to the anticipated closing of the Shares for Debt Transaction and/or private placement; risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; termination of WLM agreements; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. There can be no assurance that statements of forward-looking information, although considered reasonable by RDT management at the time of preparation, will prove to be accurate as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States. The securities described in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238589

FAQ

What is the value of Rapid Dose Therapeutics' debt settlement transaction?

The debt settlement transaction involves canceling $400,000 in outstanding accounts payable in exchange for issuing 1.6 million common shares at $0.25 per share.

When is the deadline for RDTCF to complete its debt settlement transaction?

The Canadian Securities Exchange has granted an extension allowing the company to close the Shares for Debt Transaction by March 10, 2025.

Why did Rapid Dose Therapeutics cancel its $6 million private placement?

The company announced it will not proceed with the previously planned $6 million private placement at this time, but did not provide specific reasons for the cancellation.

What is the price per share for RDTCF's debt settlement transaction?

The debt settlement transaction involves issuing shares at $0.25 per share to creditors.