Rapid Dose Therapeutics Announces Payment in Shares for Interest on Secured Debt
Rapid Dose Therapeutics (RDT) announced its plan to issue common shares to pay accrued interest on its secured convertible notes and other debt obligations. The company aims to issue 520,968 shares at $0.18 each to satisfy $93,775.72 of interest on its notes. Additionally, 41,968 shares will be issued to Madison Partners for $7,554.28 of interest on a $250,000 debt. These shares will be issued no later than July 15, 2024, and will be subject to a holding period of four months and one day.
The notes, which mature on November 30, 2025, have an annual interest rate of 12%, calculated monthly and payable quarterly in shares. The financing included $3,134,445 in notes and 15,672,225 warrants.
- Issuance of 520,968 common shares to satisfy $93,775.72 interest on notes.
- Issuance of 41,968 shares to Madison Partners for $7,554.28 interest on $250,000 debt.
- Total units issued: $3,134,445 in notes and 15,672,225 warrants.
- Issuing new shares may lead to shareholder dilution.
Burlington, Ontario--(Newsfile Corp. - July 2, 2024) - Rapid Dose Therapeutics Corp. (CSE: DOSE) ("RDT" or the "Company") announced today that as contemplated in the secured convertible notes (the "Notes") previously issued on its private placement financing (the "Financing"), the Company intends to issue common shares ("Common Shares") in satisfaction of the accrued interest payable on June 30, 2024 under the terms of the Financing and the Notes, and expects to issue the Common Shares no later than July 15, 2024.
The Financing was an offering of units (the "Units") at a price of
The Notes have a maturity date of November 30, 2025 and bear interest from their date of issue at
In accordance with the terms of the Notes and the Financing, the Company intends to issue 520,968 Common Shares to the holders of the Notes at a deemed issue price of
Furthermore, the Company intends to issue 41,968 Common Shares to Madison Partners Corporation in connection with the
Interest on the Madison Debt is
Accordingly, in accordance with the terms of the Madison Debt, the Company intends to issue 41,968 Common Shares to Madison Partners Corporation at a deemed issue price of
All Common Shares issued as payment for accrued interest will be subject to a hold period expiring four months and one day from the date of issue of the Common Shares.
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:
RDT Investor Contact:
Mark Upsdell, CEO
mupsdell@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. Forwardlooking statements are often identified by terms such as "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, 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
2.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215288
FAQ
What is the impact of Rapid Dose Therapeutics' recent share issuance on its stock?
When will Rapid Dose Therapeutics issue the new shares announced on July 2, 2024?
What is the interest rate on Rapid Dose Therapeutics' secured convertible notes?
How many common shares will be issued by Rapid Dose Therapeutics to satisfy interest payments on June 30, 2024?
What is the closing market price of Rapid Dose Therapeutics' common shares on June 28, 2024?
Who is Madison Partners in relation to Rapid Dose Therapeutics?
What is the total principal amount of notes issued in Rapid Dose Therapeutics' financing?
What is the maturity date of Rapid Dose Therapeutics' secured convertible notes?
