Aurora Spine Corporation (TSXV: ASG) (OTCQB: ASAPF) announced it has reached a settlement in an arbitration dispute and entered into a new patent license agreement related to its SiLO TFX Transfixing SI Joint System, according to a press release dated August 14, 2026.

The Carlsbad, California-based company signed a new non-exclusive license to US patent #9,451,986 with SILIF Corporation of New York. The four-year license, beginning August 11, 2026, replaces a prior agreement and resolves a disagreement over royalty payment calculations.

As part of the settlement, Aurora Spine will pay SILIF $283,000 in cash. In return, SILIF will return 2,700,000 shares to the company and extinguish a related note payable owed to Aurora Spine. The settlement also establishes a simplified royalty calculation on future SiLO TFX sales. The previously initiated arbitration will be dismissed.

Separately, an unnamed insider agreed to increase an existing loan to the company by $600,000, bringing the total principal amount to $2.2 million. The loan carries an interest rate of 4.5% per annum and matures on July 11, 2029. Aurora Spine may repay the loan in whole or in part at any time without penalty. Upon a change of control, the maturity date will be accelerated and the full balance will become due upon written request from the holder.

Aurora Spine's wholly owned subsidiary, Aurora Spine, Inc., continues to serve as guarantor and provide security for the obligations under the promissory note. The company stated it intends to use the loan proceeds for general corporate purposes.

The transaction is classified as a related party transaction under Multilateral Instrument 61-101 but qualifies for an exemption from formal valuation and minority approval requirements.