NEW YORK, Nov. 10, 2016 (GLOBE NEWSWIRE) -- Axsome Therapeutics, Inc. (NASDAQ:AXSM), a clinical-stage biopharmaceutical company developing novel therapies for the management of central nervous system (CNS) disorders, announced today that it has entered into a $20 million term loan agreement with Silicon Valley Bank. Axsome intends to use the additional capital to support the ongoing development of its late-stage clinical pipeline. "The initial $10 million tranche of the term loan will allow us to conduct our planned Phase 2/3 trial of AXS-05 in agitation in patients with Alzheimer's disease and simultaneously extend our cash runway through the end of 2017," said Herriot Tabuteau, M.D., Chief Executive Officer of Axsome. "Importantly, this term loan bolsters our cash position ahead of meaningful clinical milestones including the interim analysis of our Phase 3 trial with AXS-02 in patients with complex regional pain syndrome. The subsequent funds, totaling an additional $10 million, if drawn, would extend our cash runway further into the second quarter of 2018. We are pleased to enter into this collaboration with Silicon Valley Bank which allows us to broaden our development pipeline and strengthen our balance sheet at an attractive cost of capital." "Silicon Valley Bank is pleased to support Axsome's growth as it advances its clinical pipeline, which includes several Phase 3 clinical trials," said Ryan Roller, Vice President of Silicon Valley Bank. "We look forward to our partnership with Axsome, whose vision is to develop products with the potential to positively affect the lives of patients with serious and difficult to treat conditions." Under the terms of the three-tranche loan agreement, the initial $10 million tranche is triggered upon closing. The remaining $10 million can be drawn, at Axsome's option, subject to the achievement of certain clinical and financial milestones. The loan bears interest at an annual rate equal to 4.50% plus the prime rate, which is currently 3.50%. It matures in November 2020 and has an interest-only payment period of 12 months, which may be extended to 18 months upon the drawing of the second tranche. In addition, upon the funding of each tranche, Axsome will issue warrants to purchase shares of Axsome common stock equal to between approximately 2.1% and 4.8% of each tranche drawn. Additional details of the loan agreement, and a copy of the agreement itself, will be filed with the Securities and Exchange Commission on a Current Report on Form 8-K.