Rocket Doctor AI plans $2M convertible debenture offering

Rocket Doctor AI Inc. (CSE: AIDR, OTC: AIRDF, Frankfurt: 939) announced a proposed non-brokered private placement of unsecured convertible debentures totaling up to $2,000,000, according to a company statement.

The debentures, priced at $1,000 each, will carry an interest rate of 12% per annum, calculated and payable at maturity, which is 12 months from the date of issuance. Holders may convert the principal and any accrued interest into units at $0.70 (US$0.50) per unit, with each unit consisting of one common share and one transferable share purchase warrant.

Each warrant is exercisable at $0.75 (US$0.54) per share for 12 months from issuance. The warrant expiry date may be accelerated if the company's shares trade on the CSE at $0.75 or more for 10 consecutive trading days, after which holders would have 10 calendar days following delivery of an acceleration notice to exercise.

The company said it intends to use the net proceeds for working capital and general and administrative expenses, with a focus on its U.S. growth plans.

Closing of the offering is subject to corporate and regulatory approvals, including that of the CSE. The offering has no minimum subscription requirement and may close in one or more tranches. The company also indicated it may pay finders' fees to eligible parties in accordance with CSE policies.

The securities have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption.

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