Rapid Dose Therapeutics announced today that it closed on the first tranche of a previously announced private placement financing.

Burlington, Ontario-based Rapid Dose develops drug delivery products, including the flagship QuickStrip thin, orally dissolvable film that was designed to be infused with a number of active ingredients, including nutraceuticals, pharmaceuticals and vaccines, that are delivered quickly into the bloodstream, resulting in rapid onset of the active ingredient.

The company closed the $230,000 tranche of the financing, which is worth up to $5 million in gross proceeds. The placement consists of up to 5,000 units at $1,000 per unit. Each unit consists of $1,000 principal amount of unsecured convertible notes and 100 common share purchase warrants of the company. In this first tranche, 230 units were purchased, according to a news release.

Rapid Dose’s notes have a maturity date of 24 months from the closing date and bear interest from their date of issue at 10% per annum. further 2% per annum interest payment will be made annually in cash or in common shares of the company as determined by the company. The notes are convertible into common shares at a conversion price of 40¢ per common share.

The company plans to use proceeds from the financing to continue the research and development of oral thin films embedded with vaccines and mRNA as the active ingredients.

Other uses for the funds raised include financing capital expansion projects for specific revenue streams for working capital supporting revenue streams coming online and costs and fees for the financing itself.