Company: MDCXW
Filing Date: 2025-05-27
Form Type: S-1
Source: 0001062993-25-010394
Chunk: 245

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-27
Form: S-1
Chunk 245
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 on the Company’s condensed consolidated balance sheet as of March 31, 2025. F-36 Initial Public Offering On November 14, 2024, the Company completed the sale of 970,000 Units, with 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,