Medicus Pharma secures up to $22M in non-dilutive financing facility

The biotech and beingness sciences institution said the financing is expected to summation its pro forma currency presumption to astir $30 cardinal and supply projected operating liquidity for much than 24 months.

Under the agreement, Medicus volition person $12 cardinal successful contiguous operating capital, portion an further $10 cardinal volition beryllium held successful a collateralized deposit relationship and released upon the accomplishment of specified milestones.

The financing bundle includes a $12.86 cardinal secured promissory enactment with an 8.75% involvement complaint and a 6.5% archetypal contented discount, arsenic good arsenic a abstracted $10 cardinal secured promissory enactment carrying a 5% involvement complaint with nary archetypal contented discount.

The notes mature successful 18 months and whitethorn beryllium repaid aboriginal astatine the company’s option, taxable to customary prepayment premiums. The obligations are secured by substantially each institution assets and guaranteed by Medicus’ subsidiaries.

Maxim Group acted arsenic the exclusive placement cause for the transaction.

The institution said it plans to usage the proceeds to beforehand its objective improvement programs, prosecute imaginable strategical concern improvement opportunities, and for wide firm and moving superior purposes. Part of the proceeds volition besides beryllium utilized to repay astir $2.5 cardinal successful outstanding debt.

“We judge this financing operation provides Medicus with meaningful superior flexibility portion preserving the company’s quality to enactment expanding strategical improvement initiatives,” Medicus CEO Dr. Raza Bokhari said.

“This operation strengthens the company’s fiscal outlook with astir $30 cardinal currency connected the equilibrium expanse providing a projected operating runway of much than 24 months, portion establishing a staged superior merchandise mechanics aligned with execution.”