Medicus Pharma secures $8 million debenture financing for drug development

Medicus Pharma Ltd. (NASDAQ: MDCX) announced it has entered into a purchase agreement with YA II PL, Ltd., an investment fund managed by Yorkville Advisors Global, LP, for an $8 million non-dilutive debenture financing.

The debenture carries an 8% annual interest rate and matures in twelve months from issuance. The company will make monthly installments of principal and interest, with all remaining amounts due at maturity. Medicus may redeem the debenture early at face value plus accrued interest.

The financing refinances approximately $1.7 million in existing debentures issued in May and June 2025. After refinancing costs, original issue discount and fees, net proceeds total approximately $5.7 million.

The debenture includes standard default provisions and restrictive covenants limiting debt and liens. If a default occurs, the interest rate increases to 18% until cured. Yorkville may require redemption using proceeds from any equity financing other than a previously announced standby equity purchase agreement.

Medicus stated it plans to use proceeds to accelerate development of Teverelix, a GnRH antagonist drug candidate for acute urinary retention and high cardiovascular risk prostate cancer applications. The company completed acquisition of Antev, the UK-based developer of Teverelix, in August 2025.

According to the press release, Teverelix completed Phase 1 and Phase 2a clinical trials. The FDA provided written guidance on a proposed Phase 3 trial design in January 2023 and approved Phase 2b study designs for advanced prostate cancer in December 2023 and acute urinary retention in November 2024.

The debenture is guaranteed by the company's subsidiaries. Terms and conditions are detailed in documents that will be filed with the SEC and available through EDGAR and SEDAR+.

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