Rapid Dose Announces Proposed Equity Private Placement Financing

Rhea-AI Summary

Rapid Dose Therapeutics (RDTCF) has announced plans for an equity private placement financing to raise up to $3 million in gross proceeds. The financing will offer up to 13,636,364 units at $0.22 per unit, with each unit comprising one common share and one warrant. The warrants will be exercisable at $0.34 per share for a two-year term.

Meadowbank Asset Management will serve as the agent, receiving a 6% cash commission and 6% in agent warrants from investors they introduce. The proceeds will be used for research and development, capital expansion, and working capital. The securities will have a four-month hold period from closing.

["Potential to raise up to $3 million in additional capital", "Proceeds will support R&D, capital expansion, and working capital needs", "Two-year warrant term provides flexibility for investors"]

Positive

• None.

Negative

• Potential dilution for existing shareholders
• 6% commission and additional agent warrants increase the cost of capital
• Four-month hold period may limit immediate liquidity for investors

Burlington, Ontario--(Newsfile Corp. - May 27, 2025) - Rapid Dose Therapeutics Corp. (CSE: DOSE) ("RDT" or the "Company") today announced that it plans to complete an equity private placement financing (the "Financing") for up to $3,000,000 of gross proceeds, consisting of up to 13,636,364 units (the "Units") at a price of $0.22 per Unit. Each Unit will consist of one (1) common share of the Company (a "Common Share") and one (1) common share purchase warrant of the Company (a "Warrant"). Each Warrant will be exercisable to acquire one (1) Common Share at a price of $0.34 per Common Share for a term of two (2) years from the date of issuance of such Warrant.

The Company has entered into an agreement with Meadowbank Asset Management Inc. (the "Agent") in respect of the Financing. The Agent shall be paid a cash commission equal to 6% of the aggregate gross proceeds raised pursuant to the Financing from investors introduced to the Company by the Agent. The Company shall also issue such number of non-transferable agent warrants (each, an "Agent Warrant") as is equal to 6% of the number of Units issued to investors in the Financing that were introduced to the Company by the Agent. Each Agent Warrant will be exercisable to acquire one (1) Common Share at a price of $0.34 per Common Share for a term of two (2) years from the date of issuance of such Agent Warrant.

The Company intends to use the proceeds from the Financing for research and development, capital expansion and working capital purposes. The Financing may close in one or more tranches. All securities issued on the Financing will be subject to a four-month hold from the applicable date of closing.

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
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 "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.

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/253587

FAQ

What is the size and price of RDTCF's private placement financing?

RDTCF's private placement aims to raise up to $3 million by offering up to 13,636,364 units at $0.22 per unit, with each unit including one common share and one warrant exercisable at $0.34.

How will Rapid Dose Therapeutics use the proceeds from the private placement?

The company will use the proceeds for research and development, capital expansion, and working capital purposes.

What are the terms of the warrants in RDTCF's private placement?

Each warrant will be exercisable to acquire one common share at $0.34 per share for a two-year term from the date of issuance.

What is the role of Meadowbank Asset Management in RDTCF's financing?

Meadowbank Asset Management will act as the agent, receiving a 6% cash commission and 6% in agent warrants from investors they introduce to the financing.

What restrictions apply to the securities issued in RDTCF's private placement?

All securities issued in the financing will be subject to a four-month hold period from the applicable closing date.