Acerus Enters into Loan Facility to Support Anticipated Product Launch and Sales and Marketing Initiatives

Acerus Pharmaceuticals Corporation (TSX:ASP) today reported that it has entered into a senior secured term credit facility with Quantius Inc. for up to Cdn. $5 million. $3 million was available at closing, with the remaining $2 million becoming available upon satisfaction of certain future conditions, including 1) our U.S. Partner for NATESTO^® achieving a set number of prescriptions per month, and 2) maintaining ESTRACE^® sales at a set minimum level.

The credit facility bears interest at a rate equivalent to the Bank of Canada prime plus 11.05% and matures on December 1, 2019. As part of the transaction, Quantius will receive 1) an underwriting fee representing a low single digit percentage of the maximum facility amount and 2) a royalty fee representing a low single digit percentage of the company’s revenues over the term of the facility capped at a high single digit percentage of the borrowed amount. Under terms of the agreement, the company will have the option to prepay the loan with the payment of low single digit prepayment penalties, which will be fully offset against the royalty fee. The terms of the agreement also contain customary financial covenants.

The funds will be used primarily to support sales, marketing and new product development efforts.

“We are pleased to be working with Quantius, who are providing valuable support during this important growth period. This non-dilutive financing is a good way to supplement our cash position at this time,” said Ken Yoon, Chief Financial Officer of Acerus. “The facility will allow us to continue our efforts to grow NATESTO^® sales in Canada and to support the launch of GYNOFLOR^™, if approved by Health Canada,” said Luc Mainville, Interim Chief Executive Officer of Acerus.

About Acerus

Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the development, manufacture, marketing and distribution of innovative, branded products that improve patient experience, with a primary focus in the field of men’s and women’s health. The Company commercializes its products via its own salesforce in Canada, and through a global network of licensed distributors in the U.S. and other territories.

Acerus currently has two marketed products. ESTRACE^®, a product for the symptomatic relief of menopausal symptoms, is commercialized in Canada; and NATESTO^®, the first and only testosterone nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism, is commercialized in Canada and the U.S. In addition, NATESTO^® has been licensed for distribution in 30 countries worldwide. Marketing approvals in jurisdictions outside of North America are expected to take place over the course of the coming years. Acerus’ pipeline includes two innovative products: GYNOFLOR^™, an ultra-low dose vaginal estrogen combined with a probiotic, for which a NDS has been filed in Canada for the treatment of atrophic vaginitis, restoration of vaginal flora and treatment of certain vaginal infections; and TEFINA^™, a clinical stage product aimed at addressing a significant unmet need for women with female sexual dysfunction. Finally, the Company owns or has a license to numerous patents relating to proprietary delivery systems as well as novel formulations of products currently in the early stage of development.

Acerus’ shares trade on TSX under the symbol ASP. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.

About Quantius Inc.

Quantius is a Toronto based commercial lender that attributes value to both tangible and intangible assets of innovative companies. The Quantius team combines technology and operations expertise with credit management and originations depth, and levers a proprietary best-in-class Intellectual Property (“IP”) analytics platform to identify companies whose commercial outperformance is driven by superior IP. For more information on Quantius please visit www.quantius.ca.

Notice Regarding Forward-Looking Statements

Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the ability of Acerus to obtain the second tranche of the financing, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 7, 2017, which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

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Acerus Pharmaceuticals Corporation
Ken Yoon, 905-817-8288
Chief Financial Officer
[email protected]