AURIS MEDICAL (EARS)

[senderos]

Auris Medical Announces Early Repayment of Part of its Loan Facility
BY GlobeNewswire
— 6:45 AM ET 04/09/2018

Zug, Switzerland, April 9, 2018 - Auris Medical Holding AG ( EARS), a clinical-stage company dedicated to developing therapeutics that address important unmet medical needs in neurotology, today announced the voluntary early repayment of part of its loan facility with Hercules Capital, Inc. The repayment will result in a significant reduction of the Company's interest expense.

Auris Medical ( EARS) has entered into an agreement with Hercules whereby the terms of the Company's loan and security agreement with Hercules were amended to eliminate the $5 million liquidity covenant in exchange for a repayment of $5 million principal amount outstanding under the agreement. The amendment also eliminated any early repayment fees associated with such repayment. The repayment will reduce Auris Medical's ( EARS) annual interest expense by more than $0.5 million. Apart from these savings, the repayment does not affect the Company's previously announced cash runway, as the Company had not included $5 million of cash on its balance sheet in its cash runway forecast, due to the existence of the liquidity covenant under the loan and security agreement.

Following the early repayment, less than $4 million in principal remain outstanding under the Hercules loan facility. Auris Medical ( EARS ) and Hercules have agreed to enter into further negotiations regarding the loan and security agreement, which could include a restructuring of the amortization and repayment terms.