Rapid Dose Therapeutics Corp. announced a brokered private placement of 5,000 units at a price of CAD 1,000 per unit for gross proceeds of CAD 5,000,000 on May 26, 2022. Each unit will consist of CAD 1,000 principal amount of unsecured convertible notes and 100 common share purchase warrants.

All notes will have a maturity date of 24 months from the closing date and will 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 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 will be convertible, at the option of the holders at any time prior to maturity, into common shares at a conversion price of CAD 0.40 per share. Each warrant may be exercised for one common share at a price of CAD 0.40 per share for a term of 24 months from the closing date. All securities issued will be subject to a four month hold from the date of closing.