Auris Medical Announces Early Repayment of Part of its Loan Facility

Auris Medical (NASDAQ: 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, The repayment will result in a significant reduction of the Company’s interest expense.

As quoted in the press release:

Auris Medical 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 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.

Click here to read the full press release.