Medexus Announces Closing of $32.5 Million Public Offering, Including Exercise in Full of Over-Allotment Option

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, CHICAGO and MONTREAL, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Medexus Pharmaceuticals Inc. (“Medexus” or the “Company”) (TSXV:MDP) (Frankfurt: P731) announced today that it has closed its previously announced bought deal public offering of 4,581,689 units (the “Units”) at a price of $7.10 per Unit for total gross proceeds of approximately $32,529,992 (the “Offering”), including 597,611 Units sold pursuant to the exercise in full of the over-allotment option granted to the Underwriters (as defined herein).

The Offering was led by Raymond James Ltd. and Stifel GMP, as co-lead underwriters and joint bookrunners, on behalf of a syndicate of underwriters consisting of Roth Canada, ULC, Bloom Burton Securities Inc. and Mackie Research Capital Corporation (collectively, the “Underwriters”).

Each Unit consists of one common share (each a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at a price equal to $10.00 until February 23, 2023. In the event that the volume weighted average trading price of the Common Shares on the TSX Venture Exchange for ten (10) consecutive trading days exceeds $14.00, the Company may, within 10 business days of the occurrence of such event, deliver a notice (including a press release) to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice. The Warrants issued pursuant to the Offering have been conditionally approved for listing and are expected to commence trading on the TSX Venture Exchange under the symbol “MDP.WT” shortly following the closing of the Offering, subject to the satisfaction of all listing conditions.

As previously announced, the Company intends to use the net proceeds to fund certain payments owed to medac GmbH under the commercialization and supply agreement (the “Agreement”) dated February 2, 2021 as such payments become due pursuant to the terms of the Agreement and for working capital and general corporate purposes.

The Units were offered and sold by way of a final short form prospectus dated February 17, 2021 (the “Prospectus”) filed in each of the provinces of Canada and offered and sold elsewhere outside of Canada on a private placement basis. Further details of the Offering are set out in the Prospectus, available on the Company’s SEDAR profile at www.sedar.com.