Medicus Pharma Ltd. Announces Pricing of $7.0 Million Public Offering

Rhea-AI Summary

Medicus Pharma (NASDAQ: MDCX) has announced a public offering of 2,260,000 units priced at $3.10 per unit, aiming to raise $7.0 million. Each unit includes one common share and one warrant with a 5-year expiration and $3.10 exercise price. The proceeds will primarily fund Phase 2 clinical trials for their basal cell carcinoma treatment using a doxorubicin-loaded dissolvable microarray needle skinpatch. The company may also expand trials to other non-melanoma skin diseases. The offering, led by Maxim Group LLC with co-placement agents Brookline Capital Markets and D. Boral Capital, is expected to close on June 2, 2025. Additionally, MDCX recently announced plans to acquire Antev Ltd., a UK biotech developing Teverelix for prostate cancer and urinary retention treatment, subject to due diligence and approvals.

Positive

• Secured $7.0 million in funding to advance clinical trials
• Proceeds will support Phase 2 proof of concept trial for innovative skin cancer treatment
• Potential expansion into other non-melanoma skin diseases trials
• Strategic acquisition of Antev Ltd. could expand product pipeline with late-stage prostate cancer treatment

Negative

• Dilutive offering affecting current shareholders
• Best-efforts basis offering provides less certainty than firm commitment
• Warrants could lead to additional future dilution if exercised
• Antev acquisition still subject to due diligence and may not close

Insights

Biotech Investment Analyst

Medicus raised $7M to fund Phase 2 trials for skin cancer patch treatment, diluting shareholders at below-market pricing.

Medicus Pharma has priced a $7 million public offering consisting of units priced at $3.10 each, with each unit containing one common share and one five-year warrant. This financing structure is particularly dilutive as it includes 100% warrant coverage at the same price as the shares, essentially creating potential for double dilution if the stock performs well enough for warrant exercise.

The company is directing proceeds toward a critical Phase 2 proof-of-concept trial for its doxorubicin microarray needle skinpatch for basal cell carcinoma. Their technology appears promising based on their Phase 1 results, which showed complete response in 6 participants upon histological examination. The company is currently running two randomized controlled trials (SKNJCT-003 and SKNJCT-004) in multiple regions.

While this capital infusion provides runway to advance their clinical programs, the $3.10 unit pricing suggests the company couldn't secure more favorable terms, potentially indicating limited institutional investor confidence or challenging market conditions. The "best-efforts" basis of the offering (rather than a firm commitment) further reinforces this interpretation. For existing shareholders, this financing represents significant dilution through the addition of 2.26 million new shares plus potential for another 2.26 million shares upon warrant exercise.

The pending acquisition of Antev Ltd. mentioned in the release adds strategic complexity, as the company will need to balance resource allocation between advancing their skin cancer platform and integrating Antev's late-stage prostate cancer treatment candidate if that transaction closes.

Philadelphia, Pennsylvania--(Newsfile Corp. - May 29, 2025) - Medicus Pharma Ltd. (NASDAQ: MDCX) (the "Company") today announced the pricing of its public offering of 2,260,000 units, on a "best-efforts" basis, at a price of $3.10 per unit. Each unit consists of one common share of the Company and one warrant to purchase one common share. The warrants will have an exercise price of $3.10 per share and will expire 5 years from the date of issuance.

Maxim Group LLC is acting as the lead placement agent for the offering. Brookline Capital Markets, a division of Arcadia Securities, LLC and D. Boral Capital are acting as co-placement agents for the offering.

The common shares are listed on The Nasdaq Capital Market under the symbol "MDCX". The warrants will not trade on any securities exchange. The offering is expected to close on June 2, 2025, subject to customary closing conditions.

The Company intends to use any net proceeds from the offering to fund its Phase 2 proof of concept clinical trial for treatment of basal cell carcinoma using its doxorubicin tip loaded dissolvable microarray needle skinpatch. The Company may also use the net proceeds of the offering to expand its exploratory phase 2 clinical trial to a pivotal trial and/or to expand its trials to cover other non-melanoma skin diseases. The company will use any remaining net proceeds for general corporate purposes and working capital.

This offering will only be made by means of a prospectus. Copies of the preliminary prospectus relating to the offering and final prospectus, when available, may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State or jurisdiction.

For further information contact:

Carolyn Bonner, President
(610) 636-0184
cbonner@medicuspharma.com

Anna Baran-Djokovic, SVP Investor Relations
(305) 615-9162
adjokovic@medicuspharma.com

About Medicus Pharma Ltd:

Medicus Pharma Ltd. (NASDAQ: MDCX) is a biotech/life sciences company focused on accelerating the clinical development programs of novel and disruptive therapeutics assets.

SkinJect Inc. a wholly owned subsidiary of Medicus Pharma Ltd, is a development stage, life sciences company focused on commercializing novel, non-invasive treatment for basal cell skin cancer using patented dissolvable microneedle patch to deliver chemotherapeutic agent to eradicate tumors cells. The Company has completed a phase 1 safety & tolerability study (SKNJCT-001) in March of 2021, which met its primary objective of safety and tolerability; the study also describes the efficacy of the investigational product D-MNA, with six (6) participants experiencing complete response on histological examination of the resected lesion. The Company is currently conducting a randomized, controlled, double-blind, multicenter clinical study (SKNJCT-003) in United States and Europe. The Company has also commenced a randomized, controlled, double-blind, multicenter clinical study (SKNJCT-004) in UAE.

In April 2025, the company also announced entering into a binding letter of intent to acquire Antev Ltd. ("Antev"), a UK-based late clinical stage biotech company, developing Teverelix, a next generation GnRH antagonist, as first in market product for cardiovascular high-risk prostate cancer patients and patients with first acute urinary retention (AURr) episodes due to enlarged prostate. The transaction with Antev is subject to the completion of satisfactory due diligence by Medicus, negotiation of definitive agreements, obtaining applicable corporate, regulatory and other third-party approvals and the fulfillment of customary closing conditions. No assurances can be made that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transactions will be consummated on the terms or timeframe currently contemplated, or at all.

Cautionary Notice on Forward-Looking Statements

Certain information in this news release constitutes "forward-looking information" under applicable securities laws. "Forward-looking information" is defined as disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action and includes, without limitation, statements regarding the timing and completion of the offering, the Company's expected use of the net proceeds of the offering, the Company's development of Skinject, including current future studies in respect thereof, the potential Antev transaction, including the entry into a definitive agreement in respect of the Antev transaction, the closing of the transaction or the timing thereof, the potential benefits of the Antev transaction, if consummated, including plans and expectations concerning, and future outcomes relating to, the development, advancement and commercialization of Teverelix. Forward-looking statements are often but not always, identified by the use of such terms as "may", "on track", "aim", "might", "will", "will likely result", "would", "should", "estimate", "plan", "project", "forecast", "intend", "expect", "anticipate", "believe", "seek", "continue", "target" or the negative and/or inverse of such terms or other similar expressions.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including those risk factors described in the Company's public filings on EDGAR and SEDAR+, which may impact, among other things, the trading price and liquidity of the Company's common shares. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Readers are cautioned that the foregoing list is not exhaustive and readers are encouraged to review the Company's long form prospectus accessible on the Company's profile on EDGAR at www.sec.gov and on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253922

FAQ

What is the size and price of Medicus Pharma's (MDCX) public offering?

Medicus Pharma is offering 2,260,000 units at $3.10 per unit, totaling $7.0 million. Each unit includes one common share and one warrant with a $3.10 exercise price.

How will MDCX use the proceeds from its $7.0 million offering?

The proceeds will fund Phase 2 proof of concept clinical trials for basal cell carcinoma treatment using their doxorubicin skinpatch, potential expansion to other non-melanoma skin diseases, and general corporate purposes.

What is the status of Medicus Pharma's acquisition of Antev Ltd?

The acquisition is in preliminary stages with a binding letter of intent signed in April 2025, subject to due diligence, definitive agreements, and regulatory approvals.

When is MDCX's public offering expected to close?

The offering is expected to close on June 2, 2025, subject to customary closing conditions.

What are the terms of the warrants in MDCX's offering?

The warrants have an exercise price of $3.10 per share and will expire 5 years from the date of issuance. They will not trade on any securities exchange.