Rapid Dose Therapeutics Corp. has entered into an agreement for a drawdown equity financing facility (the “Investment Agreement”) with a single institutional investor. Subject to its terms and conditions and at the Company’s option, the Investment Agreement would provide RDT with up to C$10.0 million over a 24-month period to finance product development, continued expansion of distribution agreements and manufacturing capacity into global markets.
The Investment Agreement is structured to provide RDT with relatively quick access to private placement financing, as and when, required. Under the Investment Agreement, RDT has the right to draw down on the facility, at its sole discretion, through equity private placement tranches of up to C$500,000 each. Each tranche will be a placement of units (each a “Unit”), with each Unit comprising one RDT common share (a “Share”) and one common share purchase warrant (a “Warrant”). The Units will be priced at a discount of between 15% to 25% from the market price of the Shares on the Canadian Securities Exchange at the time of the applicable RDT draw-down notice to the investor, or such lesser discount as dictated the policies of the Exchange. The Warrants will have an exercise price set at a 20% premium over the market price of the Shares and will have a term of three years. There are no standby charges or other upfront fees associated with the Investment Agreement. Each tranche of Units issued under the Investment Agreement will be subject to the acceptance of the Canadian Securities Exchange.
Rapid Dose Therapeutics Corp. is a publicly traded Canadian life sciences company that provides innovative, proprietary drug delivery technologies designed to improve outcomes and quality of lives. RDT offers Quick, Convenient, Precise and Discreet™ choices to consumers. RDT is focused and committed to clinical research and product development for the healthcare manufacturing industry, including nutraceutical, pharmaceutical and cannabis industries.