Medicus Pharma Secures $22M Non-Dilutive Financing, Extends Runway Over 24 Months
MDCX•Medicus Pharma secured $22 million in structured non-dilutive financing, lifting pro forma cash to about $30 million and extending its operating runway beyond 24 months. The deal comprises a $12.86 million 8.75% note and a $10 million 5% note, with proceeds funding clinical programs and repaying $2.5 million debt.
1. Financing Overview
Medicus Pharma entered into a $22 million structured financing facility with an institutional investor, providing $12 million in immediate operating capital and a $10 million collateralized deposit account. This transaction boosts the company’s pro forma cash to approximately $30 million and secures an operating runway exceeding 24 months.
2. Allocation of Proceeds
Net proceeds from the financing will support advancement of Medicus Pharma’s clinical development programs, potential strategic business development initiatives and general corporate purposes, including repayment of approximately $2.5 million of outstanding indebtedness.
3. Note Terms and Security
The financing consists of a $12.86 million secured promissory note at 8.75% interest (6.5% original issue discount) and a $10 million secured note at 5% interest. Both notes mature in 18 months, are secured by substantially all company assets and allow optional early repayment subject to customary premiums.
