Rapid Dose Therapeutics Corp. announced a brokered private placement of up to 3,000,000 units at a price of CAD 1.00 per unit for gross proceeds of up to CAD 3,000,000 on June 2, 2023. Each unit will consist of CAD 1.00 principal amount of secured convertible notes and five common share purchase warrants of the company.

All Notes will have a maturity date of November 30, 2025 and will bear interest from their date of issue at 12.0% per annum, calculated monthly, accrued, added to principal and payable quarterly in arrears in common shares of the Company at a price per share equal to the closing market price of the Common Shares on the last trading day of each calendar quarter. The transaction may close in one or more tranches. The Notes will be convertible, at the option of the holders at any time prior to maturity, into Common Shares at a conversion price of CAD 0.17 per Common Share.

Each whole Warrant may be exercised for one Common Share at a price of CAD 0.14 per Common Share for the initial closing. The Warrant term shall be equal to the maturity of the Notes, being November 30, 2025, notwithstanding the date on which the Warrants are issued. The Company may prepay the Notes in certain circumstances.

During the period from June 30, 2024 to December 31, 2024, the Company shall be entitled to prepay all or any portion of each of the Notes with a prepayment fee payable to each noteholder of 3% of the amount of the principal prepayment of the Note. There shall be no prepayment fee if the Notes are prepaid after December 31, 2024. The Notes will be secured.

All securities issued in the transaction will be subject to a four month hold from the applicable date of closing.