Medicus Pharma (NASDAQ:MDCX) announced Thursday that it has entered into a financing agreement with Yorkville Advisors Global, through its fund YA II PL, Ltd., raising $8 million in non-dilutive debenture financing.
The financing is structured as a one-year debenture bearing 8% annual interest, repayable in monthly installments with final payment due at maturity.
The debenture is guaranteed by the company’s subsidiaries and includes standard covenants and events of default provisions. In the case of default, the interest rate would rise to 18% until resolved.
The company has the option to redeem the debenture at face value plus accrued interest before maturity.
Under the terms of the agreement, Yorkville may also require repayment from proceeds of certain equity financings conducted by Medicus during the term, excluding those under its previously announced standby equity purchase agreement with Yorkville.
Approximately $1.7 million of the new debenture proceeds will refinance earlier debentures issued to Yorkville in May and June 2025.
After refinancing, fees, and discounts, Medicus expects net proceeds of around $5.7 million.
The company said it intends to use the funds to accelerate development of Teverelix, its next-generation GnRH antagonist in development for acute urinary retention and high cardiovascular risk prostate cancer.
Medicus estimates the combined market opportunity for these indications at roughly $6 billion.