Amedica Secures $26 Million In Funding

$20 Million Debt Facility With Hercules Technology Growth Capital $6 Million Private Placement of Senior Convertible Notes to Magna Amedica Corporation

a biomaterial company focused on using its Silicon Nitride technology platform to develop, manufacture and sell a broad range of medical devices, today announced that it has secured up to $26.0 million in additional funding consisting of a $20.0 million debt financing with Hercules Technology Growth Capital, Inc.

, and a private placement to MG Partners II Ltd., an affiliate of Magna ("Magna"), of 6% Senior Convertible Notes in an aggregate principal amount of up to $6 million. Approximately $15.2 million of the proceeds from the financing will be used to retire Amedica's senior secured credit facility with General Electric Capital Corporation and the balance will be used to further the commercialization and development of Amedica's Silicon Nitride spinal fusion products and its product candidates for use in total hip and knee joint replacements, and for general corporate purposes. Jay Moyes, Chief Financial Officer for Amedica indicated that, "the repayment of the GE Credit Facility will eliminate approximately $3.6 million of remaining scheduled principal payments in 2014, which would have otherwise been due under the GE Credit Facility. This will enable the company to now expend those resources on the commercialization of its products." "This is a significant milestone for the company," stated Eric Olson, President and Chief Executive Officer of Amedica. "Refinancing the GE Credit Facility and securing the additional working capital now puts us in a stronger financial position to further our company objectives. We are pleased to have the support of such reputable financial institutions as Hercules Technology Growth Capital and Magna in maximizing the potential of our silicon nitride biomaterial." Hercules Loan Agreement General terms of the Hercules loan agreement include interest-only payments for 12 months until July 1, 2015, with the possibility of extending the interest-only period to eighteen months. Following the interest-only period, Amedica will repay the loan in equal monthly payments of principal and interest through the scheduled maturity date on January 1, 2018. The loan is secured by a perfected first position lien on all of Amedica's assets, including intellectual property. In addition, the Company has issued Hercules a warrant to purchase up to 516,129 shares of Common Stock at an exercise price of $4.65 per share. Further information with respect to the loan arrangement with Hercules, is contained in a Current Report on Form 8-K to be filed on July 1, 2014 by Amedica with the Securities and Exchange Commission. Magna Convertible Debt Placement General terms of the convertible debt placement to Magna include the purchase of an initial Note with a principal amount of $2.9 million, for a purchase price of $2.5 million. $400,000 in principal plus interest accrued on the initial Note will be automatically extinguished upon the filing and effectiveness of a resale registration statement within certain specified timelines. Additionally, conditioned upon the effectiveness of the resale registration statement, Magna has agreed to purchase an additional Senior Convertible Note with a principal amount of $3.5 million. The Notes are convertible into shares of the Company's common stock at any time at an initial conversion price of $3.75. In addition, the Company has issued Magna a warrant to purchase up to 568,889 shares of Common Stock at an exercise price of $4.65 per share. Further information with respect to the convertible debt placement to Magna is contained in a Current Report on Form 8-K to be filed on July 1, 2014 by Amedica with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction where such offer, solicitation or jurisdiction would be unlawful.