Company: MDCXW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001062993-25-014058
Chunk: 90

Company: Medicus Pharma Ltd.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 expire 5 years from the date of issuance on June 3, 2030.  The units were offered pursuant to the Company’s Registration Statement on Form S-1, initially filed with the SEC under the Securities Act on May 27, 2025 and declared effective by the SEC on May 29, 2025. The Company incurred issuance costs of $809,606, including legal fees and placement fees directly related to the issuance.  The issuance costs incurred were recognized as a reduction in equity and allocated based on the relative fair values of the June 2030 Warrants and common shares on a standalone basis. 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).
      
        12
      
      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