Company: MDCXW
Filing Date: 2025-09-29
Form Type: S-1
Source: 0001062993-25-015841
Chunk: 250

Company: Medicus Pharma Ltd.
Filing Date: 2025-09-29
Form: S-1
Chunk 250
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. The fair value of the common shares were based on the Company's share price on the day of issuance of $2.63 and the fair value of the June 2030 Warrants were $1.92 per warrant. The June 2030 Warrants were recognized in additional paid-in capital as they met the criteria for equity classification.

The fair value of the Regulation A Warrants and June 2030 Warrants were estimated using the Black-Scholes model with the following assumptions:

|                            |   |     Issue Date 
 March 10, 2025 |     |   |   Issue Date 
 June 2, 2025 |
|:---------------------------|:--|---------------:|:----|:--|-------------:|
| Valuation date share price | $ |           3.40 |     | $ |         2.63 |
| Exercise price             | $ |           2.80 |     | $ |         3.10 |
| Dividend yield             |   |              - |     |   |            - |
| Risk-free interest rate    |   |          3.98% |     |   |        4.01% |
| Expected warrant life      |   |     5.00 years |     |   |   5.00 years |
| Expected volatility        |   |         97.81% |     |   |       97.42% |

As of June 30, 2025, 133,800 of the 1,490,000 Regulation A Warrants have been exercised for cash, with 5,000 being exercised in the three months ended March 31, 2025, for proceeds to the Company of $374,640 ($14,000 of which related to the three months ended March 31, 2025).

Initial Public Offering

On November 14, 2024, the Company completed its initial public offering ("IPO") with the sale of 970,000 Units at the price of $4.125 per Unit, with each Unit (the "Unit") consisting of one common share and one warrant (the "Public Warrants" and with the Regulation A Warrants and the June 2030 Warrants, the "Warrants") to purchase one common share at the exercise price of $4.64 per share. The Public Warrants expire five years from their date of issuance on November 15, 2029. In addition, the underwriters exercised an