PHILADELPHIA, PA — Medicus Pharma Ltd. (NASDAQ: MDCX) has secured access to up to $22 million in new financing, providing the biotechnology company with additional capital to fund clinical development programs and strengthen liquidity as it advances its therapeutic pipeline.
The financing is expected to increase Medicus’ pro forma cash position to approximately $30 million and provide funding for more than two years of operations, according to the company.
The agreement includes $12 million in immediately available operating capital and an additional $10 million that will be released upon the achievement of specified milestones.
For development-stage biotechnology companies, access to capital remains a critical factor as firms seek to fund clinical trials and business development activities before generating significant commercial revenue.
The financing package consists of two secured promissory notes. One note carries a principal amount of approximately $12.86 million, an 8.75% interest rate, and a 6.5% original issue discount. A second $10 million note carries a 5% interest rate and no original issue discount.
Under the agreement, the debt is secured by substantially all company assets and guaranteed by Medicus subsidiaries.
The financing has an 18-month maturity and allows for optional early repayment subject to customary prepayment premiums.
Medicus indicated that proceeds will be used to advance existing clinical development programs, pursue potential business development opportunities, support working capital needs, and repay approximately $2.5 million of outstanding debt.
Chief Executive Officer Raza Bokhari characterized the financing structure as a mechanism that aligns future capital access with operational milestones while extending the company’s financial runway.
The transaction was arranged through an institutional investor. Maxim Group LLC served as the exclusive placement agent.
Additional details regarding the financing are available in the company’s Form 8-K filing with the U.S. Securities and Exchange Commission.
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