11:12 AM EDT, 07/05/2024 (MT Newswires) -- Medicus Pharma ( MDPLF ) on Friday said it closed a non-brokered private placement of 2.92-million shares priced at US$2.00 each, raising US$5.85 million.

Proceeds will be used to fund Medicus' research and development programs and for working capital purposes.

The company also said holders of its US$5.17 million, 10% unsecured convertible notes due 2025, have converted all their notes into 2.59 million common shares at US$2.00 each. Medicus also issued 31,345 shares in respect of accrued and unpaid interest to notes holders who did not elect to receive cash interest, reflecting an issue price of C$1.68 per share. It paid US$41,000 of accrued and unpaid interest to noteholders who chose to receive cash interest.

Medicus noted that 215 Capital Togo PHL Fund I, LP, acquired 4-million shares via the equity offering and the notes conversion for a total US$8 million, including US$2.65 million of notes converted into shares at US$2.00 each. 215 Capital's stake has consequently increased from 7.6% to 18.4%.

Medicus shares were last seen up $0.11, or 7.4% to $1.60 on the TSX Venture Exchange.

Price: 1.60, Change: +0.11, Percent Change: +7.38