Rocket Doctor closes $4.23-million private placement

Executive Summary

• Rocket Doctor AI Inc. announced the closing of an over-subscribed, non-brokered private placement raising aggregate gross proceeds of C$4,234,700 (approx. $4.23M).
• The financing consisted of 3,677,400 special warrants and 4,792,000 units, both priced at $0.50 per security.
• Proceeds are designated for sales and administrative expenses, software R&D, and working capital to support U.S. expansion plans.

Key Details

• Total Gross Proceeds: C$4,234,700 (calculated as $1,838,700 from special warrants + $2,396,000 from units).
• Special Warrants:
  • Quantity: 3,677,400 special warrants.
  • Price: $0.50 per special warrant.
  • Gross Proceeds: $1,838,700.
  • Conversion Terms: Automatically convert into one unit each for no additional consideration.
  • Conversion Trigger: Earlier of (i) the third business day after filing a prospectus supplement for the underlying shares/warrants, or (ii) four months and one day after the issue date.
  • Hold Period: Statutory hold of four months plus one day from issuance.
• Units:
  • Quantity: 4,792,000 units.
  • Price: $0.50 per unit.
  • Gross Proceeds: $2,396,000.
  • Composition: Each unit comprises one common share and one share purchase warrant.
  • Hold Period: Statutory hold of four months plus one day from issuance.
• Warrant Terms (under Units):
  • Exercise Price: $0.75 per share.
  • Term: 12 months from the date of issuance.
  • Ratio: One warrant per unit, exercisable into one share.
• Finder’s Fees & Broker Warrants:
  • Cash Fees Paid: $201,616.
  • Broker Warrants Issued: 403,232 non-transferable broker warrants to arm's-length parties.
  • Broker Warrant Terms: Entitles holder to purchase one share at $0.75 per share for 12 months from issuance.
• Use of Proceeds: Sales and administrative expenses, software research and development, and working capital purposes.
• Listing Status: Special warrants and warrants will not be listed on any stock exchange or over-the-counter market.

Notable Quotes

• "We are appreciative of our investors for the very strong demand for this raise. These funds will help us unlock the next chapter at this critical inflection point for our company, especially enabling us to accelerate our U.S. expansion plans. We look forward to updating the shareholders and the market as we progress." — Dr. Essam Hamza, CEO