Company: MDCXW
Filing Date: 2025-05-13
Form Type: 424B3
Source: 0001062993-25-009166
Chunk: 10

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-13
Form: 424B3
Chunk 10
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 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 of March 31, 2025. 12 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