Company: MDCXW
Filing Date: 2025-05-30
Form Type: 424B3
Source: 0001062993-25-010580
Chunk: 244

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-30
Form: 424B3
Chunk 244
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 into 1,308,798 common shares. Private placement On June 28, 2024, the Company issued 1,461,250 common shares as part of a private placement for total proceeds of $5,845,000 at $4.00 per common share. The company incurred finders' fees of $375,000, which were recognized in equity as deduction from the gross proceeds received. Regulation A Offering On March 10, 2025, the Company closed its Tier II Regulation A offering with gross proceeds of $4,200,000. The Company issued 1,490,000 units at a price of $2.80 per unit. Each unit consisted of one common share of the Company and one warrant to purchase one common share (the "Regulation A Warrants"). The Regulation A Warrants have an exercise price of $2.80 per share and will expire 5 years from the date of issuance. The Company incurred total issuance costs of $483,020, including legal fees and placement fees incurred 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 Regulation A Warrants and common shares on a standalone basis. The fair values of the common shares was based on the Company's stock price on the day of issuance of $3.40 and the fair value of the Regulation A Warrants was $2.64 per warrant. The Regulation A Warrants were recognized in additional paid-in capital as they met the criteria for equity classification. The fair value of the Regulation A Warrants was estimated using the Black-Scholes model with the following assumptions:

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

As of March 31, 2025, 5,000 of the 1,490,000 Regulation A Warrants have been exercised. The Company recorded a receivable of $14,000 related to the warrant exercises which is included in prepaid expenses and other currents on the Company’s condensed consolidated balance sheet as