On June 30, 2014, Sophiris Bio Inc., the Company's wholly owned subsidiary, Sophiris Bio Corp. and its wholly-owned subsidiary, Sophiris Bio Holding Corp., and Oxford Finance LLC entered into a Loan and Security Agreement pursuant to which Oxford has loaned a principal amount of $6.0 million to the Company to refinance the Company's existing term loan with Oxford and to provide additional working capital. The principal amount was used by the company to repay approximately $2.9 million of outstanding principal on the Company's existing term loan, to pay accrued interest on such existing term loan, to pay other fees and expenses, including approximately $0.7 million in an accrued final payment due under the existing term loan, and the rest will be used for general corporate purposes.

Under the Company's existing term loan with Oxford the Company would have been required to use its cash to pay principal, interest and additional fees of approximately $3.6 million to Oxford between July 1, 2014 and November 1, 2014, the termination date of its existing term loan. The principal borrowed under the Loan and Security Agreement bears fixed interest of 9.504% per annum, which interest shall be payable monthly in arrears. Upon the earliest to occur of (i) the maturity date, (ii) the date the Company prepays all outstanding amounts under the Loan and Security Agreement, or (iii) the date that all amounts under the Loan and Security Agreement become due and payable, the Company shall pay Oxford an additional fee of 5% of the original principal amount.

The repayment terms are interest only payments through July 1, 2015 followed by 36 months of equal principal and interest payments. At its option, the Company may prepay all amounts owed under the Loan and Security Agreement, subject to a prepayment charge that is determined based on the date the loan is prepaid. In connection with the Loan and Security Agreement, the Company and the Subsidiaries granted to Oxford a security interest in all of the Company's and the Subsidiaries' personal property now owned or hereafter acquired, excluding intellectual property and certain other assets.

The Loan and Security Agreement also provides for standard indemnification of Oxford and contains representations, warranties and certain covenants of the Company and the Subsidiaries. Upon the occurrence of an event of default by the Company under the Loan and Security Agreement, Oxford will have customary acceleration, collection and foreclosure remedies.