Mr. Mark Upsdell reports

RAPID DOSE PROVIDES UPDATE ON PRIVATE PLACEMENT

Rapid Dose Therapeutics Corp., further to its press release dated Nov. 14, 2023, in regards to a third tranche closing of $500,000, thereby bringing the total amount invested to approximately $2.3-million, has received an extension from the Canadian Securities Exchange allowing it to close subsequent tranches of its private placement until Jan. 25, 2024. This previously announced private placement financing contemplates an aggregate of up to $5-million of gross proceeds consisting of up to five million units at a price of $1.00 per unit. Each unit consists of $1.00 principal amount of secured convertible notes and five common share purchase warrants of the company.

All notes have a maturity date of Nov. 30, 2025, notwithstanding the date on which the notes are issued, and bear interest from their date of issue at 12 per cent 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. A loan initiation fee of 5 per cent is payable in common shares at the end of the first calendar quarter following the applicable closing date, at a price per share equal to the closing market price of the common shares on the last trading day of such calendar quarter.

The notes are convertible, at the option of the holders, at any time prior to maturity, into common shares at a conversion price of 17 cents per common share. Each whole warrant may be exercised for one common share at a price of 14 cents per common share for the first tranche closing (the floor price). For any subsequent tranches closing under the financing, the exercise price of the warrants shall be the higher of the floor price and the closing market price of the common shares on the last trading day immediately prior to any such subsequent tranche closing. The warrant term is equal to the maturity of the notes, being Nov. 30, 2025, notwithstanding the date on which the warrants are issued. All securities issued on the financing will be subject to a four-month hold from the applicable date of closing in accordance with applicable securities laws.

The company may prepay the notes in certain circumstances. During the period from June 30, 2024, to Dec. 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 per cent of the amount of the principal prepayment of the note. There shall be no prepayment fee if the notes are prepaid after Dec. 31, 2024.

The notes are secured pursuant to a general security agreement issued by the company in favour of the various noteholders. The company intends to use the proceeds from the financing for working capital purposes and to repay debt. The first $2.5-million of proceeds raised pursuant to the financing is intended for general working capital purposes, with any proceeds raised thereafter being used to first repay approximately $750,000 principal of secured debt, as well as any accrued and unpaid interest thereon, provided, however, that the company shall, at any time, have the right to repay the principal and/or interest on the secured debt, in whole or in part, from any proceeds raised pursuant to the financing.

About Rapid Dose Therapeutics Corp.

Rapid Dose Therapeutics is a Canadian biotechnology company revolutionizing drug delivery through innovation. The company's 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, that are delivered quickly into the bloodstream, resulting in rapid onset of the active ingredient.

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