Rapid Dose Announces Extension to Promissory Notes

Rapid Dose Therapeutics (OTC:RDTCF) announced an agreement to extend the maturity dates of most secured convertible notes issued in its 2023 private placement from November 30, 2025 to November 30, 2026.

Rhea-AI Summary

Rapid Dose Therapeutics (OTC:RDTCF) announced an agreement to extend the maturity dates of most secured convertible notes issued in its 2023 private placement from November 30, 2025 to November 30, 2026. Noteholders representing $3,084,445 of the aggregate $3,134,445 principal accepted the Extension; one $50,000 holder will be repaid in cash.

The Extension raises the notes' annual interest rate from 12% to 18%, compounded monthly, converts accrued interest of $62,860.65 into common shares (to be issued by Dec 15, 2025), and pays a 5% extension fee in shares at $0.16 per share. Related parties hold $1,696,371 of notes; the board approved the transaction and relied on MI 61-101 exemptions.

Positive

• Note maturities extended to Nov 30, 2026 for $3,084,445
• Accrued interest $62,860.65 will be paid in shares, conserving cash
• Company may prepay notes on 10 days' notice

Negative

• Interest rate increased from 12% to 18%, compounded monthly
• Extension fee of 5% payable in shares at $0.16 (dilution)
• Insiders hold $1,696,371 of notes (related party transaction)

Argus Dec 12 session

-28.33% close to close Open Argus

Details

News Market Reaction – RDTCF

On Dec 12, the first trading day after this news, RDTCF closed 28.33% below the previous close.

Data tracked by StockTitan Argus for the Dec 12 session.

Key Figures

2023 Notes principal: $3,134,445 Notes extended: $3,084,445 Convertible price: $0.17 per share +5 more

2023 Notes principal

$3,134,445

Aggregate principal amount of secured convertible notes from 2023 financing

Notes extended

$3,084,445

Principal of Notes with maturity extended to November 30, 2026

Convertible price

$0.17 per share

Conversion price of secured convertible notes

Interest rate

18% per annum

New interest rate on Notes after Extension (up from 12%)

Extension fee

5%

Extension fee to participating noteholders, payable in common shares at $0.16

Accrued interest

$62,860.65

Accrued interest to be paid in shares as of November 30, 2025

Insider-held Notes

$1,696,371

Aggregate principal of Notes held by company insiders

Warrants issued

15,672,225 warrants

Total warrants from 2023 unit financing with exercise prices $0.14–$0.17

Historical Context

1 past event · Latest: Oct 02

1 event

1. Oct 02

   Debt interest payment

   24h Move

   +36.4%

   Company paid note interest in shares under 2023 secured convertible notes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible notes, private placement financing, common share purchase warrants, related party transaction, +1 more

5 terms

convertible notes financial

"its outstanding secured convertible notes (the "Notes") previously issued"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

private placement financing financial

"previously issued on its private placement financing (the "Financing")"

Private placement financing is when a company raises money by selling stocks, bonds or other securities directly to a small group of chosen investors instead of offering them on the public market. For investors it matters because these deals can change ownership stakes, bring fresh cash for growth or debt reduction, and affect how easy it is to buy or sell those securities later—think of it like inviting a few private backers into a business rather than opening the door to the whole neighborhood.

common share purchase warrants financial

"and five common share purchase warrants of the Company"

A common share purchase warrant is a tradable right that lets its holder buy a company’s ordinary shares at a fixed price for a set period, like a coupon that can be redeemed later to buy stock at a predetermined rate. Investors care because warrants offer leverage on future upside—they can magnify gains if the share price rises above the set price—but they can also dilute existing shareholders if used, and they expire worthless if unused.

related party transaction regulatory

"Therefore, the Extension is a related party transaction within the meaning"

A related party transaction is any deal or transfer of value between a company and people or entities with close ties to it — such as executives, major owners, family members, or affiliated businesses. Investors watch these transactions because they can favor insiders over outside shareholders, skirt fair market pricing, or hide risks; like selling your car to a relative at a friendly price, they require clear disclosure and scrutiny to judge impact on value.

multilateral instrument 61-101 regulatory

"within the meaning of Multilateral Instrument 61-101 ("MI 61-101")"

Multilateral Instrument 61-101 is a securities regulation that sets rules for certain corporate deals—like mergers, asset sales, or related-party transactions—to protect minority shareholders by requiring extra disclosure, independent valuation and, in many cases, formal shareholder approval. Think of it as an impartial referee and checklist that forces companies to show the full playbook and get a vote or an independent price opinion, so investors can judge whether a proposed deal is fair and avoid being overridden by insiders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Burlington, Ontario--(Newsfile Corp. - November 28, 2025) - Rapid Dose Therapeutics Corp. (CSE: DOSE) ("RDT" or the "Company") announced today that it intends to extend the maturity date of its outstanding secured convertible notes (the "Notes") previously issued on its private placement financing (the "Financing") which closed in 2023. The Notes have a maturity date of November 30, 2025, and the Company intends to extend the maturity date for one year, to November 30, 2026.

The Financing was an offering of units (the "Units") at a price of $1.00 per Unit. Each Unit consisted of $1.00 principal amount of Notes convertible at $0.17 per share and five common share purchase warrants of the Company with an exercise price of between $0.14 and $0.17 per share and an expiry date of November 30, 2025. The Company closed all four tranches of the Financing between July 2023 and December 2023, issuing an aggregate of $3,134,445 principal amount of Notes and 15,672,225 warrants.

Specifically, noteholders holding an aggregate of $3,084,445 of Notes have agreed to extend the maturity date on its Notes to November 30, 2026, and extend the expiry date on their accompanying common share purchase warrants of the Company (the "Warrants") to November 30, 2026 with an exercise price of $0.16; and such noteholders shall accordingly receive an extension fee of 5%, payable in common shares ("Common Shares") at a price of $0.16 per share (collectively, the "Extension"). One noteholder holding a $50,000 Note was unable to extend the maturity date of their note and shall therefore have the principal repaid in cash.

Pursuant to the Extension, the Notes shall bear interest at 18% per annum (an increase from 12% per annum), calculated and compounded monthly, and added to principal and shall otherwise continue to be paid in accordance with the original terms of the Notes. That is, interest shall be payable quarterly in arrears in Common Shares at a price per share equal to the closing market price of the Common Shares on the Canadian Securities Exchange (the "CSE") on the last trading day of each calendar quarter. The conversion price of the Notes will remain at $0.17 per share. The Company will be permitted to prepay the Notes on 10 days' advance notice without notice or bonus.

In accordance with the terms of the Notes, the Company intends to issue Common Shares in satisfaction of the accrued and unpaid interest on the Notes for all Noteholders, due on the initial maturity date of November 30, 2025. Therefore, the Company intends to issue Common Shares at the closing market price of the Common Shares on the CSE on November 28, 2025 (the last trading day of the month), in satisfaction of the aggregate of $62,860.65 of accrued interest owing on the Notes at such time. The Company expects to issue the Common Shares no later than December 15, 2025.

All securities issued pursuant to the Extension as well as for payment of the accrued interest will be subject to a hold period expiring four months and one day from the date of issue of such securities.

Certain insiders of the Company hold an aggregate of $1,696,371 of Notes and participated in the Extension. Mark Upsdell, Chief Executive Officer and a director of the Company, holds $500,000 of Notes and 2,500,000 warrants; John McKimm (via his holding company, Madison Partners Corporation), a director of the Company, holds $346,371 of Notes and 1,731,855 warrants; Christine Hrudka, a director of the Company, holds $50,000 of Notes and 250,000 warrants; and Angela O'Leary, a director of the Company, holds $800,000 of Notes and 4,000,000 warrants. Therefore, the Extension is a related party transaction within the meaning of Multilateral Instrument 61-101 ("MI 61-101"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Section 5.5(b) (Company is listed on the Canadian Securities Exchange) and Section 5.7(1)(a) (fair market value of the Extension insofar as it involves related parties does not exceed 25% of the Company's market capitalization) in respect of such transaction. A resolution of the board of directors of the Company was passed to approve the Extension.

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.

Contact:
RDT Investor Contact:
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/276319

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What notes did Rapid Dose (RDTCF) extend on November 29, 2025?

Holders of secured convertible notes issued in the 2023 private placement extended most notes from Nov 30, 2025 to Nov 30, 2026.

How much principal did Rapid Dose extend under the note amendment (RDTCF)?

Noteholders representing $3,084,445 of the $3,134,445 aggregate principal agreed to the extension.

What interest changes apply to the extended Rapid Dose notes (RDTCF)?

Interest increases to 18% per annum from 12%, calculated and compounded monthly, added to principal.

When will Rapid Dose issue shares to satisfy accrued interest on the notes (RDTCF)?

The company intends to issue shares for the accrued interest of $62,860.65 at the CSE closing price on Nov 28, 2025, no later than Dec 15, 2025.

Will the note extension for Rapid Dose (RDTCF) cause equity dilution?

Yes; the Extension includes a 5% fee paid in common shares at $0.16 and interest paid in shares, which increases outstanding shares.

Are insiders involved in Rapid Dose's note extension (RDTCF)?

Yes; insiders hold an aggregate of $1,696,371 of notes and participated in the Extension; the board approved the related party transaction under MI 61-101 exemptions.