Aurora Spine cuts loan rate, extends insider note

Executive Summary

• Aurora Spine Corp. has amended an existing $1.6 million insider loan, reducing the interest rate from 9% to 4.5% per annum effective January 1, 2026, and extending the maturity date from June 29, 2027, to July 11, 2029.
• The amendment introduces a change of control acceleration clause, allows penalty-free prepayment, and maintains the subsidiary guarantee while constituting a related party transaction exempt from formal valuation and minority approval requirements.

Key Details

• Principal Amount: $1.6 million (U.S.)
• Accrued/Unpaid Interest: $1,249,500 (U.S.)
• Interest Rate: Reduced from 9% to 4.5% per annum (effective Jan. 1, 2026); defaults to 12% per annum or maximum legal rate upon event of default
• Maturity Date: Extended from June 29, 2027, to July 11, 2029
• Change of Control: Maturity will be accelerated, making the note due and payable in full upon written request from the holder
• Prepayment: Company may prepay principal and accrued interest in whole or in part at any time without penalty
• Guarantee & Security: Wholly owned subsidiary Aurora Spine Inc. continues to guarantee and secure the company's obligations under the note
• Use of Proceeds: General corporate purposes
• Regulatory Classification: Related party transaction under Multilateral Instrument 61-101; exempt from formal valuation and minority approval requirements
• Conditions: Subject to receipt of all necessary approvals