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 therapeutics 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.