Company: MDCXW
Filing Date: 2025-06-30
Form Type: DEF 14A
Source: 0001062993-25-012273
Chunk: 36

Company: Medicus Pharma Ltd.
Filing Date: 2025-06-30
Form: DEF 14A
Chunk 36
---
 more of the voting power), at a per-share price below the "Minimum Price" (as defined under Nasdaq Rule 5635(d)) at the time of issuance.

Standby Equity Purchase Agreement

On February 10, 2025, the Company entered into a Standby Equity Purchase Agreement (the "SEPA") with YA II PN, Ltd. ("Yorkville"). Pursuant to the SEPA and subject to the satisfaction of certain conditions, Yorkville has committed to purchase the Common Shares from the Company in increments (each purchase, an "Advance") with an aggregate gross sales price of up to $15,000,000 during the 36 months following the date of the SEPA (such shares, the "SEPA Shares"). The SEPA Shares will be sold at the Company's option pursuant to the SEPA at 97% of then-applicable market price (as determined in accordance with the SEPA), subject to the Company's right to set a minimum acceptable price in 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