Rapid Dose Therapeutics Corp. (CSE: DOSE) has entered into an investment agreement with an institutional investor, which will see the company secure a drawdown equity financing facility in the amount of $10 million over the span of two years. The company plans to use the proceeds to increase its international manufacturing and distribution agreements, as well as support its product development.
As per the agreement, RDT will be able to efficiently access $500,000 worth of private placement tranches at a time, which will consist of a purchase warrant and a common share in the company. The holder of the private placement securities will be able to purchase them at a reduced rate anywhere between 15% to 20% of the market price. Then, the exercise price of the warrants will have a 20% premium, over a duration of three years.
However, the securities holder cannot hold in excess of 9.99% of the company’s outstanding common shares prior to the purchase of securities under this investment agreement. Also, there must be a minimum duration of five days between the closing of one securities purchase and the purchase of another set of securities.
Rapid Dose Therapeutics Corp is a Canadian-based company focused on developing proprietary drugs for the healthcare industry, and is currently trading at $0.30 on the CSE.
Information for this briefing was found via Sedar and Rapid Dose Therapeutics Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.