Rapid Dose Therapeutics Business Update
February 26, 2019
BURLINGTON, Ontario – February 26, 2019 – Rapid Dose Therapeutics Corp. (“RDT” or the “Company”) (CSE: DOSE), a Canadian bio-technology company focused on innovative drug delivery solutions, is pleased to provide a business update. RDT’s proprietary QuickStrip™ technology is a Quick, Convenient, Precise, Discreet™ oral fast-dissolving drug delivery system for both nutraceutical and cannabis products.
RDT continues its efforts to develop its business, including expanding the markets into which its products are being marketed, adding new capabilities to its head office staff and pursuing the development of its technologies.
Managed Strip Services Agreements
RDT continues to negotiate and secure, on a selective basis, managed strip services (MSS) agreements to license the Company’s QuickStrip™ proprietary delivery technology to regulatory approved companies supplying cannabis products in their specified jurisdictions. In addition to RDT’s four previously-announced MSS agreements, the Company has expanded its market penetration to include the state of Nevada by signing a five-year MSS agreement with Flower One Holdings Inc. (“Flower One”) (CSE:FONE) to produce, distribute and sell QuickStrip™ branded products into the Nevada medical and adult recreational cannabis markets. RDT considers MSS agreements to be recurring, nature of the business, transactions providing the basis for access to additional markets throughout North America and internationally. As RDT now has five managed strip services agreements in place and expects additional agreements to be signed from time to time for other markets, the Company now views such events as events in the ordinary course of its business.
Financial impact of MSS Agreements
On the operations side, RDT continues to perform under these signed MSS agreements. With internal testing of production systems nearing completion, RDT has scheduled the delivery of five QuickStrip™ production systems during the first quarter of FY2020 (FY2020 commences March 1, 2019) for installation and commissioning in RDT’s customers’ locations. The signed MSS agreements provide for initial signing fees, installation and commissioning fees, per unit production fees with periodic minimums and other revenues over their respective terms. As a result of the signed MSS agreements, RDT has received, as of January 31, 2019, initial cash payments amounting to CDN$1,137,656 and 173,556 common shares of publicly traded companies with a current market value of approximately CDN$272,482.
RDT is moving forward on several fronts towards implementing its distribution of QuickStrip™ nutraceutical products in the North American and international markets. Test market sales have been initiated in Nevada and Ontario through direct-to-retailer distribution. Consumer research has simultaneously been undertaken by an international market research organization for the purpose of gaining further insights into consumer preferences for RDT’s alternative delivery of active ingredients. RDT is in the process of finalizing its U.S. sales, marketing and distribution program intended to offer U.S. consumers access to QuickStrip™ products through national retailers and through e-commerce solutions. RDT’s Canadian distribution program is also in its final stages with timelines for roll-out during this current calendar year.
RDT has also been adding depth and expertise to the organization through hiring of senior personnel with responsibilities for planning and executing RDT’s strategic business plan. The Company has engaged Dr. Gabriela Radulescu as Medical Director and Jason Bhola, Director of Operations. Gabriela and Jason have extensive senior management experience in the pharmaceutical sector covering product research, patient outcomes, governmental & regulatory compliance, manufacturing and supply chain management.
Research and Development Activities
RDT is expanding its research and development activities, internally and with third parties including McMaster University in Hamilton, Ontario and University of Nevada at Las Vegas. RDT’s research projects are focusing on both the properties of the delivery device and the bioavailability and efficacy of the active ingredients delivered through sublingual absorption.
“RDT has continued to strengthen its position as an innovator within the medical delivery system sector providing consumers and patients a Quick, Convenient, Precise and Discreet™ alternative to pills and ingestible products. RDT’s previously announced agreements and those in development in 2019 will support rapid global expansion of the QuickStrip™ brand and accelerate QuickStrip™ consumer adoption into key Canadian and global cannabis markets.” said Mark Upsdell, President and Chief Executive Officer of the Company.
About Rapid Dose Therapeutics
Rapid Dose Therapeutics Corp. is a publicly-traded Canadian biotechnology company that provides innovative, proprietary drug delivery technologies designed to improve outcomes and quality of lives. Through its wholly-owned subsidiary, Rapid Dose Therapeutics Inc., 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 Managed Strip Service Program 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 — potentially generating value for consumers and shareholders. Rapid Dose Therapeutics is committed to continually create innovative solutions aimed at multiple consumer segments and future market needs.
For more information, visit: www.rapiddose.ca
For inquiries please contact:
Ofc (416) 477-1020
Ali Mahdavi, Managing Director
Spinaker Capital Markets Inc.
Ofc (416) 962-3300
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this news release may contain forward-looking information within the meaning of applicable securities laws.
Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend”, “will”, “could”, “are planned to”, “are expected to” or the negative of these terms and similar expressions. Statements containing forward-looking information, including, without limitation, in respect of the delivery of equipment and products using the QuickStrip™ product delivery method and the generation of revenues from signed MSS agreements, express, as at the date of this news release, the plans, estimates, forecasts, projections, expectations or beliefs of RDT management as to future events or results and are believed to be reasonable based on information currently available to RDT management. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; termination of MSS agreements; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. There can be no assurance that statements of forward-looking information, although considered reasonable by RDT management at the time of preparation, will prove to be accurate as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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