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Be the first with the news that moves the market- Rapid Dose Therapeutics (CSE:DOSE) has attained a Cannabis Licence from the Canada Revenue Agency (CRA).
- The biotechnology company has also obtained all approvals for cannabis processing and packaging for Canada.
- Although RDT does not own, buy, or sell cannabis, their insurance provider has categorised RDT as a cannabis company.
- RDT Director Donald Sheldon and Chief Financial Officer Miles Nagamatsu have resigned from the company, due to the expiry of RDT’s insurance coverage.
- RDT’s share price is up 18.33 per cent, with shares currently trading at $0.36 apiece.
Biotechnology company Rapid Dose Therapeutics (DOSE) has obtained cannabis-related licences which have cost them their insurance.
This month, Rapid Dose Therapeutics received a Cannabis Licence from the Canada Revenue Agency (CRA). They have also obtained all approvals for processing and packaging cannabis in Canada.
These licences were necessary, in order for the company to make their QuickStrip products. RDT accepts cannabis oil from customers, and processes it into QuickStrip products. After processing, the company delivers the QuickStrips back to the customers who supplied the cannabis oil.
Unfortunately, RDT’s new licences are causing problems. The company’s cannabis licensing has resulted in their insurance provider categorising RDT as a cannabis company. RDT do not own, buy, or sell cannabis, but do provide a service that produces cannabis products through their customers.
RDT’s current Directors and Officers insurance provider has recently been acquired by a new provider, who will not offer insurance coverage for cannabis businesses. As such, RDT is now looking for other D&O insurance options.
The pending expiry of the insurance coverage has resulted in company Director Donald Sheldon and Chief Financial Officer Miles Nagamatsu resigning.
Mr Sheldon and Mr Nagamatsu have both indicated that they are willing to return to their appointed roles, when RDT secures replacement insurance policies.
In the meantime, Mr Sheldon will continue to serve as RDT’s legal counsel. Mr Nagamatsu will also remain in a consulting role.
RDT Controller Rishi Kapadia will temporarily take on the roles and responsibilities of Chief Financial Officer.
RDT’s share price is up 18.33 per cent, with shares currently trading at $0.36 apiece at 10:31am EST.
