Medicus Pharma Ltd. (NASDAQ: MDCX) announced it has entered into a definitive financing agreement with an institutional investor for an up to $22 million structured financing facility.

The Philadelphia-based biotech company will receive $12 million in immediate operating capital, with an additional $10 million placed in a collateralized deposit account to be released upon achieving specified milestones. The financing is expected to increase the company's cash position to approximately $30 million and extend its operating runway to more than 24 months.

The financing structure includes a $12.86 million secured promissory note with an 8.75% interest rate and 6.5% original issue discount, and a $10 million secured promissory note carrying a 5% interest rate with no original issue discount. The notes have an 18-month maturity and are secured by substantially all company assets.

"This structure strengthens the Company's financial outlook with nearly $30 million cash on the balance sheet providing a projected operating runway of more than twenty-four months, while establishing a staged capital release mechanism aligned with execution," stated Dr. Raza Bokhari, the company's Executive Chairman and CEO.

Medicus plans to use the proceeds to support clinical development programs, potential strategic business development initiatives, and general corporate purposes, including repaying approximately $2.5 million in outstanding debt. Maxim Group LLC served as exclusive placement agent for the transaction.

The company focuses on clinical development of therapeutics including SkinJect, targeting non-melanoma skin diseases, and Teverelix, a GnRH antagonist for prostate cancer patients.