Axsome Therapeutics has amended its existing $24 million term loan facility agreement led by Silicon Valley Bank, extending the interest-only payment period as well as the time for drawing down additional funding under the loan facility.
These modifications are expected to further extend the company’s cash runway and provide additional financial flexibility.
Axsome entered into the $24 million loan agreement in March 2019. The amendment extends the interest-only payment period by a minimum of six months to 18 months, which may be further extended to 24 months should the company elect to draw down an additional $4 million that remains unfunded under the loan agreement. The period to draw this remaining amount has also been extended to December 31, 2019, subject to the achievement of positive results, prior to this date, from the company’s ongoing CONCERT Phase 2 trial of AXS-12 in narcolepsy sufficient to proceed to a Phase 3 trial. In consideration for the amendment, the final payment fee, payable upon the company’s repayment of the loan, increased from 6.0% to 6.3% of the principal amount of the loan advances. All other terms and conditions from the original term loan agreement remain substantially unchanged.
Axsome Therapeutics is a clinical-stage biopharmaceutical company developing novel therapies for the management of central nervous system (CNS) disorders for which there are limited treatment options.
