Acerus Pharmaceuticals Corporation announced that it has entered into a $15 million subordinated secured loan facility (the ‘Loan Facility’), which will be made available to the Company by way of one or more advances under a secured grid promissory note with First Generation Capital Inc. (‘First Generation’), a company affiliated with the Chairman of the Board of Directors of Acerus. The Loan Facility is subordinated to the existing facility with SWK Funding LLC (‘SWK’) and bears interest at a rate of 8% per annum. Subject to the terms of the subordination and intercreditor agreement between First Generation and SWK, the Loan Facility is repayable in full on December 31, 2024, with cash payments of interest and/or principal subject to certain exceptions related to the Company's market capitalization and the outstanding principal amount of the senior facility with SWK; the Loan Facility can be prepaid in full or in part without penalty following repayment in full of indebtedness owed to SWK. The proceeds from the Loan Facility will be used for ongoing general working capital. In light of First Generation's relationship to the Chairman of the Board of Directors of Acerus, the independent members of the Board of Directors, led by the Lead Independent Director, separately met to consider and discuss the Loan Facility. Following the review of such independent members of the Board of Directors, it was unanimously determined that entering into the Loan Facility was in the best interests of Acerus.