Mr. Ken d'Entremont reports

MEDEXUS STRENGTHENS BALANCE SHEET WITH US$18 MILLION COMMITMENT UNDER ACCORDION FACILITY

Medexus Pharmaceuticals Inc. today entered into an amendment to the company's senior secured credit agreement with Bank of Montreal as agent and lender. The amendment provides for an $18-million (U.S.) increase in BMO's term loan commitment under the existing facility's previously disclosed accordion feature, among other amendments. Medexus intends to apply the full $18-million (U.S.), net of any transaction expenses, toward repayment of the company's convertible debentures upon their maturity on Oct. 16, 2023.

"We are pleased to extend our strong partnership with BMO and bolster our liquidity position as we approach the October, 2023, maturity of our convertible debentures," commented Ken d'Entremont, chief executive officer of Medexus. "BMO's decision represents a vote of confidence in Medexus's go-forward business plan and capital strategy."

"These additional senior debt proceeds further improve our cash position and enhance our flexibility as to how we satisfy the upcoming maturity payment in respect of the remaining $39.8-million (Canadian) principal amount of convertible debentures in October," added Marcel Konrad, chief financial officer of Medexus. "We now expect that we will be in a position to make the maturity date payment entirely in cash, in the event we elect to do so."

Borrowings under the BMO credit facilities bear interest at a rate of adjusted term SOFR (secured overnight financing rate) plus a margin determined quarterly based on Medexus's consolidated leverage ratio. At June 30, 2023, before giving effect to the amendments described in this news release, $35-million (U.S.) of the term loan and $3.5-million (U.S.) of the revolving loan were outstanding, with a weighted average interest rate of 9.02 per cent. As of the date of this news release and before giving effect to the additional $18-million (U.S.) to be drawn in connection with the maturity of the convertible debentures, the weighted average interest rate is 8.68 per cent.

Additional information about the terms of the BMO credit agreement and Medexus's convertible debentures (including a copy of the related indenture) is included in the company's filings on its SEDAR+ profile.

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.

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