Company: MDCXW
Filing Date: 2025-05-05
Form Type: 8-K
Source: 0001062993-25-008436
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Company: Medicus Pharma Ltd.
Filing Date: 2025-05-05
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry into a Material Definitive Agreement.

Securities Purchase Agreement and Debentures

On May 2, 2025, Medicus Pharma Ltd., a company incorporated under the laws of the Province of Ontario, Canada (the "Company"), entered into a securities purchase agreement (the "Purchase Agreement") with YA II PN, Ltd. ("Yorkville"), in connection with the issuance and sale by the Company of debentures (the "Debentures") issuable in an aggregate principal amount of up to $5,000,000 (the "Subscription Amount"). Yorkville purchased and the Company issued $1,250,000 in aggregate principal amount of Debentures upon the signing of the Purchase Agreement. Yorkville will purchase, and the Company will issue, an additional $1,250,000 in aggregate principal amount of Debentures within five days of filing a registration statement with the Securities and Exchange Commission (the "SEC") registering the resale of the common shares issuable pursuant to that certain Standby Equity Purchase Agreement by and between the Company and Yorkville, dated as of February 10, 2025 (the "SEPA")(the "Second Closing"). At the Company's election, Yorkville will purchase, and the Company will issue, up to $2,500,000 in aggregate principal amount of Debentures within five days of the date that is sixty days following the date that the aforementioned registration statement registering the resale of the common shares issuable pursuant to the SEPA is declared effective by the SEC. Contemporaneously with the execution and delivery of the Purchase Agreement, each of the Company's subsidiaries entered into a global guaranty agreement (the "Guaranty") in favor of Yorkville with respect to the Company's obligations under the Purchase Agreement and the Debentures. Capitalized terms used, but not otherwise defined, herein have the meaning ascribed to such terms in the Purchase Agreement, a copy of which is filed herewith as Exhibit 10.1.

Interest will accrue on the outstanding principal amount of each Debenture at an annual rate of 8.00%, subject to a potential increase to 18.00% per annum upon the occurrence of certain events of default. The Debentures will mature on February 2, 2026 (the "Maturity Date"). The Debentures will be issued at a purchase price equal to 90% of the Subscription Amount. The Company will repay the outstanding principal amount of the