Rapid Dose Therapeutics Corp. (CSE: DOSE | OTCQB: RDTCF) announced on October 1, 2026, that it intends to issue common shares to settle accrued quarterly interest on its secured convertible notes and to cancel outstanding director fees through a shares-for-debt transaction. The company will issue 1,092,821 common shares at a deemed price of $0.13 per share to satisfy $142,067.63 in accrued note interest, and a separate tranche of shares to retire $250,000 owed to five non-management directors. Both transactions are designed to reduce existing liabilities and strengthen Rapid Dose's financial position without a cash outlay.

Key Points

  • Rapid Dose Therapeutics Corp. (CSE: DOSE | OTCQB: RDTCF), a Burlington, Ontario biotechnology company
  • 1,092,821 common shares to be issued at $0.13 each, settling $142,067.63 of quarterly interest on secured convertible notes bearing 18% per annum
  • Five non-management directors to receive shares at $0.13 each in cancellation of $250,000 in aggregate accrued fees spanning five fiscal quarters
  • Investors may watch for confirmation of share issuance, with all new shares subject to a four-month hold period from the date of issue

Interest Payment in Shares Under Rapid Dose's Secured Convertible Notes

Rapid Dose's amended and restated secured convertible notes, dated December 1, 2025, carry an interest rate of 18% per annum, calculated and compounded monthly, with interest payable quarterly in common shares. The deemed issue price is set at the closing market price of DOSE shares on the CSE on the last trading day of each quarter — in this case $0.13, the September 30, 2026 closing price. The company expects to issue the 1,092,821 interest shares to noteholders no later than October 15, 2026. All shares issued under this arrangement are subject to a hold period expiring four months and one day from the date of issuance.

Background on the Original Financing and Note Extension

The notes originated from a 2023 private placement in which Rapid Dose closed four tranches, issuing an aggregate of $3,134,445 principal amount of notes and 15,672,225 warrants at $1.00 per unit. The company subsequently agreed with noteholders holding $3,084,445 in aggregate principal to extend the maturity date by one year to November 30, 2026, and to extend accompanying warrants totalling 15,422,225 to the same date. The company retains the right to prepay the notes on 10 days' advance notice without penalty.

Director Fee Settlement Structured as a Related-Party Transaction

Each of the company's five non-management directors is owed $10,000 per fiscal quarter across five quarters ended August 31, 2025 through August 31, 2026, totalling $250,000 in aggregate. Rapid Dose will issue shares at the same $0.13 deemed price to cancel this liability. The transaction qualifies as a related-party transaction under Multilateral Instrument 61-101; however, the company is relying on exemptions from valuation and minority shareholder approval requirements. The board passed a resolution approving the transaction with no materially contrary view recorded, and the release states no new control person is expected to be created.