Medicus Pharma Announces $22 Million Non-Dilutive Financing

Financing Provides Immediate Growth Capital to Support Clinical Development Initiatives and Extends Projected Operating Cash Runway for Over Two (2) Years

PHILADELPHIA –– Medicus Pharma Ltd. (NASDAQ: MDCX) (“Medicus” or the “Company”), a biotech/life sciences company focused on advancing the clinical development programs of novel and potentially disruptive therapeutic assets, today announced that it has entered into a definitive financing agreement with an institutional investor providing for an up to $22 million structured financing facility.

The financing is expected to increase the Company’s pro forma cash position to approximately $30 million and provide a projected operating cash runway of more than twenty-four (24) months.

Under the terms of the financing agreements, Medicus will receive $12 million in immediate operating capital and an additional $10 million will be placed into a collateralized deposit account to be progressively released to the Company upon achievement of certain milestones specified under the terms of the financing.

The financing consists of:

• $12.86 million secured promissory note carrying an 8.75% interest rate and a 6.5% original issue discount; and
• $10 million secured promissory note carrying a 5% interest rate with no original issue discount.
• Maxim Group LLC is acting as the exclusive Placement Agent for the transaction.

“We believe this financing structure provides Medicus with meaningful capital flexibility while preserving the Company’s ability to support expanding strategic development initiatives,” stated Dr. Raza Bokhari, Medicus’ Executive Chairman and CEO. “This structure strengthens the Company’s financial outlook with nearly $30 million cash on the balance sheet providing a projected operating runway of more than twenty-four (24) months, while establishing a staged capital release mechanism aligned with execution.”

The Company intends to use the net proceeds from the offering to support advancement of its current clinical development programs, potential strategic business development initiatives as well as for general corporate and working capital purposes, including the repayment of outstanding indebtedness of approximately $2.5 million.

Under the terms of the financing, the notes are secured by substantially all Company assets and guaranteed by all of its subsidiaries.

The financing includes an 18-month maturity and permits optional early repayment by the Company subject to customary prepayment premiums.

For further details on the transaction, please refer to the Company’s Current Report on Form 8-K filing which is expected to be filed shortly with the U.S. Securities and Exchange Commission.

For further information contact:

Carolyn Bonner, President and Chief Financial Officer

(610) 636-0184

cbonner@medicuspharma.com  

Anna Baran-Djokovic, SVP Investor Relations

(305) 615-9162

adjokovic@medicuspharma.com  

About Medicus Pharma Ltd.

Medicus Pharma Ltd. (NASDAQ: MDCX) is a precision-guided biotech/life sciences company focused on accelerating the clinical development programs of novel and potentially disruptive therapeutic assets. The Company is actively engaged in multiple countries across three continents.

The Company’s current key therapeutic assets are:

SkinJect®, a novel localized immuno-oncology precision product focused on non-melanoma skin diseases, especially basal cell carcinoma (BCC) and Gorlin Syndrome, a rare autosomal dominant disease also called nevoid BCC syndrome, collectively representing a ~$2 billion annual market opportunity.

Teverelix®, a next-generation GnRH antagonist, is a first-in-market product for cardiovascular high-risk advanced prostate cancer patients and patients with acute urinary retention relapse (AURr) episodes due to enlarged prostate, collectively representing a ~$6 billion annual market opportunity.