Medicus Pharma announces $8M debenture financing

Medicus Pharma (MDCX) entered into a purchase agreement with YA II PL, pursuant to which the Company has issued and Yorkville has purchased a non-dilutive debenture in $8M principal amount. The Debenture, which is guaranteed by each of the Company’s subsidiaries, bears interest at an annual rate of 8%, matures twelve months from the date of issuance and is repayable in monthly installments together with accrued and unpaid interest, with all remaining principal and interest due and payable on the maturity date. Certain payments on the Debenture may be withheld by Yorkville from the proceeds of the previously announced standby equity purchase agreement between the Company and Yorkville. The Company may redeem the Debenture, in whole or in part, at any time prior to maturity, at face value plus accrued and unpaid interest. Pursuant to the Purchase Agreement, Yorkville may require the Company to redeem all or a portion of the Debenture with the proceeds of any equity financing, other than the SEPA, undertaken by the Company during the term of the Debenture. The Debenture refinances approximately $1.7M aggregate principal amount of debentures that the Company issued, and Yorkville purchased, in May and June of 2025 and that remain outstanding. Net proceeds to the Company after the refinancing, original issue discount and payment of fees are approximately $5.7M. The Company, amongst other things, plans to use the proceeds to accelerate the development of Teverelix, a next generation GnRH Antagonist, as a first in class market product for Acute Urinary Retention and high CV risk Prostate Cancer.