Silicon Valley Bank Loan Agreement

SVB may host sites (or parts of this site) or allow you to access additional services or content, some of which may be provided by third parties. These sites, services and content may be subject to additional or modified terms and conditions. These additional terms and conditions are made available to you or made available to you before or when accessing these sites, services or content; and can be made available to you through a hyperlink, click-through agreement or other similar means. As on this site, your use of other svB sites, services or content constitutes your continued acceptance of additional or modified terms and conditions. Conversely, if liquidity is reduced and the track is minimal, the acquisition of venture capital will inevitably prove to be more laborious and costly. It is a reminder that the venture capital industry is highly cyclical and that the availability of venture capital bonds is strongly correlated with industry trends. The availability of venture and venture capital and the multiplicity of options for the credit structure are expanding and will contract throughout the economy in response to venture capital trends, the direction of valuations in your sector and the business cycle. Think of yourself as the proverbial "Umbrella Shopper." The best time to test the market is when there is no cloud in the sky, and the worst time is when the storm is already raging at your windows. Here`s how it works: if a $10 million Series A round gives the new investor a 20 per cent stake (on a fully diluted basis), the share of existing shareholders is estimated at $50 million. Suppose the company has a monthly cash burn of $1 million, which means that Series A`s revenues offer a 10-month track.

A $3 million loan in this scenario may require diluted warrants of 25 to 50 basis points (fully diluted). In this example, the venture capital requirement would extend the runway by an additional three months. The Venture Debt Loan offers about 30 percent extra track, but carries only 1/40 of the dilution, even with a 50-base guarantee in pricing. "This funding allows us to strengthen our financial position by expanding our cash flow track and continue to implement our reoriented business strategy as planned," said Dr. Neal Walker, President and CEO of Aclaris. Aclaris believes that the proceeds of the loan, combined with existing means of payment, cash equivalents and marketable securities, will be sufficient to finance its operations until the first quarter of 2022. WAYNE, Pa., March 31, 2020 (GLOBE NEWSWIRE) — Aclaris Therapeutics, Inc. (NASDAQ: ACRS), a physician-run biopharmaceutical company, announced today that it has entered into a credit and security agreement with Silicon Valley Bank ("SVB"), under which Aclaris has lent $11 million. About Silicon Valley Bank For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward quickly. The SVB provides targeted financial services and know-how through its operations in innovation centres around the world. With commercial, international and private banking, the SVB helps meet the unique needs of innovators.

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