Rapid Dose Therapeutics Plans Share Issuance for Debt Settlement

Rapid Dose Therapeutics Corp., a Canadian biotechnology company, has announced its intention to issue common shares to satisfy accrued interest on its secured debt. According to a press release dated October 5, 2026, the company plans to issue 1,092,821 common shares to the holders of the notes, at a deemed issue price of $0.13 per share, which is the closing market price of the common shares on the Canadian Securities Exchange (CSE) on September 30, 2026. This action is in line with the terms of the amended and restated secured convertible notes dated December 1, 2025, which were issued as a result of an extension to the promissory notes originally issued in 2023.

The 2023 private placement financing, which raised $3,134,445 in principal amount of notes and 15,672,225 warrants, saw the company issue units at a price of $1.00 per unit. Each unit comprised $1.00 principal amount of notes and five common share purchase warrants. The notes bear interest at 18% per annum, compounded monthly, and added to principal and payable quarterly in arrears in common shares at a price per share equal to the closing market price of the common shares on the CSE on the last trading day of each calendar quarter. The company is permitted to prepay the notes on 10 days' advance notice without notice or bonus.

The accrued interest of $142,067.63, owing on the notes, will be paid through the issuance of the common shares. All shares issued as payment for accrued interest will be subject to a hold period expiring four months and one day from the date of issue.

Additionally, the company has agreed to issue common shares to its non-management directors in exchange for the cancellation of director fees. Each of the five directors is owed $10,000 in director fees for each of the five fiscal quarters ended August 31, 2025, November 30, 2025, February 28, 2026, May 31, 2026, and August 31, 2026, for an aggregate total amount of $250,000. The debt shares to be issued will be at a deemed price of $0.13, which was the closing market price of the company's common shares on the CSE on September 30, 2026. The company expects to issue these debt shares on or around July 15, 2026.

The issuance of the debt shares is part of the company's strategy to improve its financial position by reducing existing liabilities. All debt shares issued will be subject to a four-month hold period from the date of issuance, as applicable. The transaction is considered a related party transaction under Multilateral Instrument 61-101, and the company will be relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101. A resolution of the board of directors was passed to approve this shares-for-debt transaction, with no materially contrary views from any director.

Rapid Dose Therapeutics Corp. is focused on revolutionizing drug delivery through innovation. Its 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, for rapid delivery into the bloodstream.