Company: MDCXW
Filing Date: 2025-05-27
Form Type: S-1
Source: 0001062993-25-010333
Chunk: 245

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-27
Form: S-1
Chunk 245
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 each Unit (the "Unit") consisting of one common share and one warrant (the "Public Warrants") to purchase one common share at the price of $4.125 per Unit. In addition, the underwriters exercised an option to purchase 145,500 Public Warrants (the 'Overallotment Warrants") at a price of $0.01 per warrant. Total gross proceeds from the IPO were $4,002,705, including the proceeds from the Overallotment Warrants. The Company incurred total issuance costs of $2,218,014, including underwriter fees, and legal and other professional fees incurred directly related to the issuance. The incremental costs directly associated with the issuance were recognized as a deduction in equity and allocated based on the relative fair values of the Public Warrants and common shares on a standalone basis. The fair value of the common shares was based on the Company's stock price on the day of issuance of $2.65 and the fair value of the Public Warrants was $1.7419 per warrant. The Public Warrants were recognized in additional paid-in capital as they met the criteria for equity classification. The fair value of the Public Warrants was estimated using the Black-Scholes option pricing model with the following inputs:

|                            |   |    2024 |
|:---------------------------|:--|--------:|
| Valuation date share price | $ |    2.65 |
| Exercise price             | $ |    4.64 |
| Expected dividend yield    |   |       - |
| Risk-free interest rate    |   |   4.32% |
| Expected term (in years)   |   | 5 years |
| Expected volatility        |   |     95% |

The number of Public Warrants outstanding as of March 31, 2025:

| Public Warrants outstanding 
 Expiry date                 |   | Exercise price |     | Number outstanding |
|:----------------------------|:--|---------------:|:----|-------------------:|
| November 15, 2029           | $ |           4.64 |     |          1,115,500 |
| March 10, 2030              | $ |           2.80 |     |          1,485,000 |

Standby Equity Purchase Agreement On February 10, 2025, the Company also announced that it had entered into a Standby Equity Purchase Agreement (the "SEPA") with YA II PN, Ltd.