Rapid Dose Therapeutics Corp RDTCF

1st tranche closed

[lscfa]

Rapid Dose Therapeutics Announces Closing of First Tranche of Private Placement

BURLINGTON, Ontario--(BUSINESS WIRE)--August 10, 2022--Rapid Dose Therapeutics Corp. (“RDT” or the “Company”) (CSE: DOSE), a Canadian biotechnology company revolutionizing drug delivery through innovation, today announced that it has closed on $230,000 in a first tranche of its previously announced (May 26, 2022) private placement financing (the “Financing”) for up to $5,000,000 of gross proceeds, consisting of up to 5,000 units (the “Units”) at a price of $1,000 per Unit. Each Unit consists of $1,000 principal amount of unsecured convertible notes (the “Notes”) and 100 common share purchase warrants of the Company (the “Warrants”). On this first tranche closing, 230 Units were purchased; and accordingly, the Company issued $230,000 principal amount of Notes and 23,000 Warrants. The Notes have a maturity date of 24 months from the closing date and bear interest from their date of issue at 10.0% per annum, payable quarterly in arrears. A further 2% per annum interest payment will be made annually in cash or in common shares of the Company (“Common Shares”) as determined by the Company. During the second year of the two-year term of the Notes, the Company may prepay all or any portion of each of the Notes with an early termination fee payable to each noteholder of 1% of the amount of the principal prepayment of the Note. The Notes are convertible, at the option of the holders at any time prior to maturity, into Common Shares at a conversion price of $0.40 per Common Share. Each Warrant may be exercised for one Common Share at a price of $0.40 per Common Share for a term of 24 months from the closing date. All securities issued on the Financing are subject to a four month hold from the date of closing. The Company intends to use the proceeds from the Financing to continue its research and development of oral thin films embedded with vaccines and mRNA as the active ingredients, to finance capital expansion projects for specific revenue streams, for working capital supporting revenue streams coming on line and costs and fees for the Financing. No commissions were paid in connection with this first tranche closing; however, fees may be payable to authorized dealers or finders on subsequent closings and such commissions would consist of cash of 8% of the gross proceeds raised and broker warrants equal to 8% of such gross proceeds (the “Broker Warrants”). Each Broker Warrant would entitle the holder thereof to acquire one Common Share at a price of $0.40 per share for a term of 24 months from the closing date. This press release shall not constitute an offer to sell or the soli

[Luckierjack2]

Woo hoo they closed 4.6% of their target in two months.   LJ