Company: MDCXW
Filing Date: 2025-11-19
Form Type: S-1
Source: 0001062993-25-016962
Chunk: 236

Company: Medicus Pharma Ltd.
Filing Date: 2025-11-19
Form: S-1
Chunk 236
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otment 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 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 warrants was $1.7419 per warrant. The warrants were recognized in additional paid-in capital as they met the criteria for equity classification.

The fair value of the warrants was estimated using the Black-Scholes option pricing model with the following inputs:

<div align='center'>F-18</div>

|                            |   |    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 warrants outstanding during the year ended December 31, 2024:

| Warrants outstanding |                |                    |
| Expiry date          | Exercise price | Number outstanding |
| November 15, 2029    |         $ 4.64 |          1,115,500 |

7. Stock-based compensation

In 2023, the Company approved the Equity Incentive Plan (the "Plan"). The Plan provides both for the direct award or sale of shares and for the grant of options to purchase shares. Under the plan the total number of shares available for options cannot exceed 10% of the Company's issued and outstanding common shares at the time of any grant. The Company is authorized to issue options to employees, non-employee directors and consultants under the plan.

On June 25, 2024, the Board of Directors approved the acceleration of vesting for all outstanding share options to June 25, 2024, resulting in the Company recognizing the remaining expense for all share options outstanding and un