Rapid Dose Therapeutics Corp. (CSE: DOSE, OTCQB: RDTCF) has announced plans to issue common shares in satisfaction of accrued interest on its secured convertible notes and to settle accrued director fees through a shares-for-debt transaction. The Burlington, Ontario-based biotechnology company, known for its orally dissolvable QuickStrip™ drug delivery product, stated the moves are intended to reduce existing liabilities and improve its financial position. Investors in the oral thin-film drug delivery sector may be watching how these issuances affect the company's share structure and liability profile.

Key Points

  • Rapid Dose Therapeutics Corp. (CSE: DOSE, OTCQB: RDTCF) is a Canadian biotechnology company based in Burlington, Ontario
  • The company intends to issue 1,092,821 common shares at $0.13 per share to settle $142,067.63 in accrued interest on its secured convertible notes
  • A separate shares-for-debt transaction will issue shares at $0.13 per share to settle $250,000 in accrued director fees owed to five non-management directors across five fiscal quarters
  • All issued shares will be subject to a four-month hold period; no new control person is expected to be created

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

Rapid Dose's secured convertible notes, amended and restated as of December 1, 2025, carry an interest rate of 18% per annum, calculated and compounded monthly, with interest payable quarterly in arrears in common shares. The company intends to issue 1,092,821 common shares at a deemed price of $0.13 — the closing market price on the CSE on September 30, 2026 — to satisfy $142,067.63 of accrued interest. The notes were originally issued through a 2023 private placement financing that raised an aggregate of $3,134,445 in principal, with maturity extended to November 30, 2026 for noteholders holding $3,084,445 of that total.

Director Fee Settlement Through Shares-for-Debt Transaction

The company has also agreed with its five non-management directors to issue common shares, referred to as Debt Shares, in exchange for the cancellation of $250,000 in accrued director fees. Each director is owed $10,000 for each of five fiscal quarters ended August 31, 2025 through August 31, 2026. The Debt Shares will be priced at a deemed value of $0.13 per share, consistent with the September 30, 2026 closing market price. The company stated it expects to issue the Debt Shares on or around July 15, 2026. The board unanimously approved the transaction with no materially contrary view recorded.

Related Party Rules and Regulatory Exemptions Applied

Because directors are involved, the shares-for-debt transaction constitutes a related party transaction under Multilateral Instrument 61-101. Rapid Dose disclosed it is relying on exemptions from both the formal valuation and minority shareholder approval requirements — citing the company's CSE listing and the fact that the fair market value of the transaction does not exceed 25% of the company's market capitalisation. All Debt Shares and interest shares will carry a four-month statutory hold period from the date of issuance, as required under applicable securities regulations.