Company: MDCXW
Filing Date: 2025-06-13
Form Type: PRE 14A
Source: 0001062993-25-011673
Chunk: 38

Company: Medicus Pharma Ltd.
Filing Date: 2025-06-13
Form: PRE 14A
Chunk 38
---
 connection with any Advance.

The SEPA caps the number of Common Shares issuable thereunder at 2,362,163 (the "Exchange Cap") unless (i) shareholder approval is obtained as described in this Proposal 4 or (ii) the sale average sales price of the Common Shares sold exceeds a specified price determined in accordance with the Nasdaq 20% Rule.

It may be desirable to sell more than 2,362,163 Common Shares pursuant to the SEPA without meeting the pricing criteria specified in the SEPA. To preserve the flexibility to pursue such financing expeditiously, the Board has approved the potential issuance of more than 2,362,163 Common Shares pursuant to the SEPA, at such prices as may be desirable from time to time, subject to shareholder approval as set forth in this Proposal 4 and in accordance with the Nasdaq 20% Rule.

Effect on Current Shareholder

If this Proposal 4 is approved, Shareholders may experience dilution in the ownership and/or voting power of their existing shares to the extent we issue securities at a dilutive price in excess of the Exchange Cap. Future issuances could also reduce earnings per share, and any impact on our share price may further affect existing Shareholders' interests. The actual amount of dilution will depend on many factors, including the size, terms and timing of any private placement transactions.

Consequences if Proposal 4 is Not Approved

If the Shareholders do not approve Proposal 4, we may be unable to raise sufficient equity capital in a timely or cost-effective manner if such financing would otherwise be subject to the Exchange Cap. This limitation could restrict our ability to obtain full financing under the SEPA. Failure to obtain sufficient financing may result in the delay or indefinite postponement of our business plans. We could be forced to rely on alternative, potentially less attractive funding structures or reduce the scale and timing of our growth initiatives.

Shareholder Approval

The Board recommends that Shareholders vote in favor of the following share issuance resolution at the Meeting (the "Share Issuance Resolution").

"RESOLVED, as an ordinary resolution of the shareholders of Medicus Pharma Ltd., that the issuance, sale and delivery by the Company pursuant to the Standby Equity Purchase Agreement dated February 10, 2025 between the Company and YA II PN, Ltd. of Common Shares representing 20% or more of the issued and outstanding Common Shares prior to such issuance at prices below the minimum price specified by Nasdaq Listing Rule 5635(d) is hereby