Company: MDCXW
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001062993-25-008292
Chunk: 202

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-01
Form: DRS
Chunk 202
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 the common shares; (xi) the common shares issuable pursuant to the applicable Advance Notice being eligible for deposit at the brokerage account provided by the Selling Shareholder for the delivery of such common shares; (xii) the common shares being duly authorized by all necessary corporate action of the company; and (xiii) all Advance Shares relating to all prior Advances having been delivered by us.

Termination of the SEPA

Unless earlier terminated as provided in the SEPA, the SEPA will terminate automatically on the earlier to occur of (i) the 36-month anniversary of the date of the SEPA and (ii) the date on which the Selling Shareholder shall have purchased common shares under the SEPA for an aggregate gross purchase price equal to $15,000,000.

We also have the right to terminate the SEPA at any time, at no cost or penalty, upon five trading days' prior written notice to the Selling Shareholder; provided that (i) there are no outstanding Advance Notices under which we are yet to issue common shares and (ii) we have paid all amounts owed to the Selling Shareholder pursuant to the SEPA. We and the Selling Shareholder may also terminate the SEPA at any time by mutual written consent.

No Short-Selling by the Selling Shareholder

The Selling Shareholder has agreed that neither it nor any of its officers, or any entity managed and controlled by the Investor will engage in any short sales during the term of the SEPA and will not enter into any transaction that establishes a net short position with respect to the common shares. The SEPA stipulates that the Selling Shareholder may sell "long" and may sell our common shares to be issued pursuant to an Advance Notice, following receipt of such Advance Notice, but prior to receiving such shares.

Effect of Sales of Our Common Shares under the SEPA on Our Shareholders

All common shares that may be issued or sold by us to the Selling Shareholder under the SEPA that are being registered under the Securities Act for resale by the Selling Shareholder in this offering are expected to be freely tradable. The common shares being registered for resale in this offering may be issued and sold by us to the Selling Shareholder from time to time at our discretion over the term of the SEPA. The resale by the Selling Shareholder of a significant amount of common shares registered for resale in this offering at any given time, or the perception that these sales may occur, could cause the market price of our common shares to decline and to be highly