Rapid Dose Announces Completion of Share Issuance in Debt Settlement with Creditors

Rhea-AI Summary

Rapid Dose Therapeutics (RDTCF) has completed a debt settlement agreement with creditors by issuing 1,888,237 common shares at $0.20 per share, eliminating $377,647.50 in outstanding accounts payable. The Settlement Shares issued to Canadian residents are subject to a four-month hold period. The company clarified that this transaction is separate from a previously proposed debt settlement announced in December 2024. This strategic move aims to strengthen RDT's financial position by reducing existing liabilities, and notably, the transaction did not result in the creation of a new control person.

Positive

• Elimination of $377,647.50 in outstanding debt through share issuance
• Improvement in company's financial position through liability reduction
• No creation of new control person, maintaining current ownership structure

Negative

• Dilution of existing shareholders through issuance of 1,888,237 new shares
• Settlement shares issued at relatively low price of $0.20 per share

Burlington, Ontario--(Newsfile Corp. - June 2, 2025) - Rapid Dose Therapeutics Corp. (CSE: DOSE) ("RDT" or the "Company") today announced that further to its press release dated May 10, 2025, it has entered into debt settlement agreements with certain of its creditors (the "Creditors") to issue an aggregate of 1,888,237 common shares (the "Settlement Shares") to such Creditors in exchange for the cancellation of outstanding accounts payable (the "Shares for Debt Transaction") in the aggregate amount of $377,647.50 (the "Debt") owing to such Creditors. The Settlement Shares were issued at $0.20 per share.

The Company is completing the Shares for Debt Transaction to improve its financial position by reducing its existing liabilities. All Settlement Shares issued to Canadian residents are subject to a four-month hold period from the date of issuance. No new control person of the Company was created pursuant to the Shares for Debt Transaction. For clarity, the Company did not proceed with its previously proposed shares for debt transaction with creditors that was initially announced on December 9, 2024, and most recently referenced in its press release dated April 1, 2025.

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, 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254162

FAQ

What is the value of RDTCF's debt settlement agreement in June 2025?

RDTCF settled $377,647.50 in debt by issuing 1,888,237 common shares at $0.20 per share.

How many shares did Rapid Dose Therapeutics issue for debt settlement?

Rapid Dose Therapeutics issued 1,888,237 common shares as part of the debt settlement agreement.

What is the lock-up period for RDTCF's settlement shares?

Settlement shares issued to Canadian residents are subject to a four-month hold period from the date of issuance.

How does the June 2025 debt settlement affect RDTCF shareholders?

The settlement results in dilution for existing shareholders due to the issuance of 1,888,237 new shares, but improves the company's financial position by reducing liabilities.

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

The settlement shares were issued at a price of $0.20 per share.