Medicus Pharma Ltd. Announces Strategic Financing and Market Move

Medicus Pharma Ltd. Secures Financing with Standby Equity Purchase

Medicus Pharma Ltd. (NASDAQ: MDCX) has taken bold steps to bolster its financial structure by entering into a Standby Equity Purchase Agreement (SEPA) with YA II PN, LTD, an investment group operated by Yorkville Advisors Global, LP. This agreement grants Medicus the flexibility to sell up to $15 million worth of its common shares over a three-year period, a significant move aimed at enhancing its capital position.

Key Features of the Standby Equity Purchase Agreement

The SEPA comes with various conditions ensuring that the sale of shares is handled prudently. For instance, the sale is contingent upon Medicus successfully filing a registration statement with the SEC, which must be declared effective for the sale of shares to proceed. The total share issuance under this agreement is capped at 19.99% of Medicus's outstanding shares unless specific pricing conditions are fulfilled. Additionally, to safeguard the interests of current shareholders, the shares held by the investors cannot surpass 4.99% of the outstanding shares at any given time.

Pricing Strategy Under the SEPA

Shares sold under the SEPA will be priced at 97% of the market price during a defined pricing period. Medicus retains the authority to establish a minimum price for any shares it issues. This strategic pricing approach underscores the company's commitment to maximizing shareholder value while accessing necessary funding through the SEPA.

Medicus Pharma's Delisting from TSX Venture Exchange

In a concurrent strategic move, Medicus Pharma Ltd. has decided to voluntarily delist its shares from the TSX Venture Exchange (TSXV). The board of directors approved this delisting as part of a broader capital markets strategy. Following the submission of their application to the TSXV, the delisting will hinge on regulatory approval and compliance with necessary conditions.

Continued Presence on Nasdaq

Despite the delisting from TSXV, Medicus will continue trading on The Nasdaq Capital Market under the ticker symbol “MDCX.” This decision aligns with the company's findings that a substantial majority of its trading volume occurs on Nasdaq. By focusing operational efforts there, Medicus aims to enhance liquidity and accessibility for its shareholders.

Commitment to Information Transparency

Medicus intends to maintain its status as a reporting issuer in Canada and will continue to adhere to disclosure requirements set forth by Canadian securities laws, ensuring that stakeholders remain fully informed. The company echoes its pledge of transparency, keeping investors updated on the progress of its delisting application through future announcements.

Trading Shares through Canadian Brokerage Accounts

Shareholders based in Canada can remain confident in trading their shares on Nasdaq through their local brokers. Many brokers in Canada, including both discount and online platforms, facilitate buying and selling securities listed on Nasdaq—offering continued trading opportunities without interruption.

About Medicus Pharma Ltd.

Medicus Pharma Ltd. is committed to advancing innovative therapeutic solutions within the biotechnology sector. The company is at the forefront of clinical program development for its proprietary therapeutics, aiming to significantly impact patient care. Additionally, through its subsidiary, SkinJect Inc., Medicus is working on groundbreaking non-invasive treatments for basal cell skin cancer, employing a patented microneedle patch for localized chemotherapeutic delivery.

With ongoing clinical trials, including a recent phase 2 protocol submitted to the FDA, Medicus aims to position itself as a leader in oncology therapeutics. The innovative nature of its approach underscores a promise to deliver effective and less invasive treatment options to patients struggling with skin cancer.

Frequently Asked Questions

What is the Standby Equity Purchase Agreement (SEPA)?

The SEPA allows Medicus Pharma Ltd. to sell shares to YA II PN, LTD for up to $15 million over three years, providing necessary capital.

Why is Medicus Pharma delisting from the TSX Venture Exchange?

The company is focusing on trading primarily on Nasdaq due to higher trading volume and liquidity, making the delisting part of its strategic capital markets plan.

What will happen to shareholders after the delisting?

Shareholders will still be able to trade their shares on Nasdaq, ensuring ongoing access and liquidity despite the TSXV delisting.

How does Medicus Pharma ensure transparency post-delisting?

Medicus will continue to report as a Canadian issuer and provide regular updates on its activities and financials according to Canadian securities laws.

What innovative treatments is Medicus working on?

Medicus is developing a non-invasive treatment for basal cell skin cancer using a microneedle patch, with ongoing clinical trials aimed at enhancing efficacy and safety.

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