Medicus Pharma (TSX-V:MDCX) announced that it plans to complete a non-brokered private placement raising US$5,845,000 through the issuance of 2,922,500 shares at US$2 each.
The life sciences firm said it will use the proceeds from the offering to fund its research and development programs and for working capital purposes.
Closing of the offering is expected to occur on or about June 28, subject to customary closing conditions.
Medicus expects to pay US$375,000 of finders’ fees in connection with the private placement.
Further, the company announced that per the indenture governing its US$5,172,500 outstanding principal amount of 10% unsecured convertible notes due 2025, it has notified holders that it has brought forward the first date they may convert their notes into shares at US$2 per share by June 28.
Holders of all the notes have chosen to make the conversion, which is expected to occur by the end of June.
Those who elected to receive cash upon conversion will receive approximately US$15.28 of accrued and unpaid interest for each US$1,000 principal amount of notes converted.
All other holders of notes will receive approximately 12.53 shares in respect of accrued and unpaid interest for each US$1,000 principal amount of notes converted.