Mr. Ken d'Entremont reports

MEDEXUS PHARMACEUTICALS ANNOUNCES OVERNIGHT MARKETED PUBLIC OFFERING OF COMMON SHARES

Medexus Pharmaceuticals Inc. has launched an overnight marketed underwritten offering of common shares of the company.

The offering is expected to be completed pursuant to an underwriting agreement to be entered into between the company and Raymond James Ltd. as lead underwriter and sole bookrunner and a syndicate of underwriters. The company has agreed to grant to the underwriters an overallotment option exercisable, in whole or in part, in the sole discretion of the lead underwriter, to purchase up to an additional 15 per cent of the number of common shares sold in the offering for up to 30 days from the closing date of the offering.

The size of the offering and the offering price of the common shares will be determined in the context of the market at the time of entering into the underwriting agreement, and there can be no assurance as to the completion of the offering. The closing of the offering is expected to occur on or about Jan. 31, 2025, and will be subject to market and other customary closing conditions.

The company expects that the net proceeds of the offering will be used: (i) to repay a $2.5-million (U.S.) credit received from medac in September, 2021, and pay a portion of the milestone payment amount to medac; and (ii) for working capital and general corporate purposes, which may include financing the company's continuing business development activities and initiatives.

The offering will be conducted by way of a prospectus supplement to the company's base shelf prospectus dated Nov. 15, 2024, to be filed in each of the provinces and territories of Canada (other than Quebec). In addition, the common shares may also be offered in the United States on a private placement basis pursuant to exemptions from the registration requirements under Rule 144A and/or Regulation D of the United States Securities Act of 1933, as amended, subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and in those other jurisdictions outside of Canada and the United States, provided that no prospectus filing or comparable obligation arises in such other jurisdiction.

The base shelf prospectus is available under the company's profile on SEDAR+; and, upon determination of the size and pricing of the offering and the signing of the underwriting agreement, the prospectus supplement will be filed and available on SEDAR+.

About Medexus Pharmaceuticals Inc.

Medexus is a leading specialty pharmaceutical company with a strong North American commercial platform and a growing portfolio of innovative and rare disease treatment solutions. Medexus's current focus is on the therapeutic areas of oncology, hematology, rheumatology, auto-immune diseases, allergy and dermatology.

We seek Safe Harbor.