Company: MDCXW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001062993-25-009125
Chunk: 71

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

      1. Description of business
      Medicus Pharma Ltd. (the "Company" or "Medicus Pharma"), formerly Interactive Capital Partners Corporation ("Interactive"), is a clinical stage, multi-strategy holding company focused on investing in and accelerating novel life sciences and bio-technology companies through FDA approved clinical trials.
      The Company is a public limited Company originally incorporated pursuant to the provisions of the Business Corporations Act (Ontario) on April 30, 2008, as a private company named Interactive Capital Partners Corporation, with nominal assets and liabilities. The Company's registered office is located at 100 King Street West, Suite 3400, One First Canadian Place, Toronto, Ontario, Canada.
      Liquidity and Going Concern
      The Company has incurred significant operating losses and cash outflows from operating activities since its inception. The Company incurred net losses of $5,102,408 and $1,707,358 for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the Company had an accumulated deficit of $34,006,311. Since inception, the Company has funded its operations primarily through equity and debt financings.
      On February 10, 2025, the Company announced that it had entered into the SEPA (as defined below). Subject to the satisfaction of certain conditions, Yorkville (as defined below) has committed to purchase the Company's common shares up to an aggregate gross sales price of $15,000,000 during the 36 months following the date of the SEPA. See Note 6 for further details.
      On March 10, 2025, the Company closed its Tier II Regulation A offering for gross proceeds of approximately $4,200,000.  The Company issued 1,490,000 units at a price of $2.80 per unit.  Each unit consists of one common share of the Company and one warrant to purchase one common share.
      The Company expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. In addition to accessing public markets through the exercise of outstanding warrants, additional  Regulation A financings and the SEPA, management believes that the Company has access to additional capital resources through public and/or private equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, if