Rapid Dose Therapeutics Announces Credit Facility Financing

BURLINGTON, Ontario, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Rapid Dose Therapeutics Corp. trading on the Canadian Securities Exchange (“CSE”) under the symbol DOSE (“RDT” or the “Company”) announces that the Company, in conjunction with Leede Jones Gable, has received an initial advance from a strategic industry investor of $500,000 of financing as part of a proposed $6,000,000 credit facility.

The financing comes from a lender with upstream assets who recognized the significance of the RDT technology and business model to allow for the rapid deployment of QuickStrip™ into the global markets. The high margin opportunity in the THC and CBD markets was key to the decision to select RDT as an investment opportunity. 

The proposed credit facility of which $3,000,000 (which includes the first tranche of $500,000) will be in the form of a term loan to be taken up on signing, with the remaining $3,000,000 to be made available as a revolving line of credit drawn in increments of $500,000. The funds are to be used to support the rapid expansion into new markets, the roll out of the Company’s production at its Burlington Ontario facility, provide operating capital for its trade credit and to finance special projects in conjunction with the Company’s strategic business growth strategies. Operationally, provision by the lender of a secure supply of quality CBD will enable RDT to provide final CBD products for Canada and export markets.

Funds advanced to the Company under this initial advance bear interest at an annual rate of 12%, payable monthly in arrears. In connection therewith, and upon closing of the proposed credit facility, the initial advance will be rolled into the credit facility with an interest waiver for the first twelve (12) months. As part of the transaction, the Company will issue the lender seven (7) million warrants exercisable at $0.25 cents per share over a 24-month period.

Mark Upsdell, CEO of RDT said “This is a very exciting and important confirmation that our technology, strategy, and downstream product offering is exactly the type of investment opportunity that strategic investors are seeking. RDT continues to pursue its global strategy of implementing QuickStrip™ sublingual / buccal delivery in pharmaceuticals, nutraceuticals, and in the adult use cannabis market with select global Licensed Producers. This facility will enable RDT to initiate new growth programs in development, reach new markets, continue its partnerships arrangements in researching the benefits of QuickStrip as a COVID vaccine delivery alternative, and have access to working capital for operations.”

About Rapid Dose Therapeutics

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. Within the cannabis sector, RDT provides a turn-key business solution which enables RDT’s QuickStrip™ proprietary drug delivery technology to be licensed by select partners. RDT’s service-based annuity contracts drive recurring revenue which enables rapid expansion into emerging markets — generating value for consumers and shareholders. RDT is committed to continually create innovative solutions aimed at multiple consumer segments and future market needs — including humans, animals and plants.

For more information, visit: www.rapiddose.com

For further inquiries please contact:

Mark Upsdell
President and Chief Executive Officer

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This news release contains forward-looking information. All information, other than statements of historical fact, that address activities, events or developments that RDT believes, expects or anticipates will or may occur in the future are forward-looking statements, including statements regarding the completion of the proposed $6,000,000 credit facility. This forward-looking information is subject to a variety of risks and uncertainties beyond RDT’s ability to control or predict and which may cause actual events or results to differ materially from those described in such forward-looking information. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, RDT disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although RDT believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be placed on this forward-looking information due to the inherent uncertainty thereof.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.