Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Event

Note 8.  Subsequent Event

In November 2016, the Company entered into a $20.0 million term loan agreement with Silicon Valley Bank (“SVB”). The three-tranche loan agreement consists of an initial $10.0 million tranche triggered upon closing, with the remaining $10.0 million available to be drawn in two $5.0 million tranches, at the Company’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 the greater of 3.50% or the Wall Street Journal prime rate. 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 connection with the loan agreement, the Company issued warrants, which have a 7-year term, to purchase shares of the Company’s common stock at a price per share equal to approximately $7.41. The warrants will be exercisable for shares of common stock as follows: 65,228 upon the effective date of the loan agreement, 13,978 upon the drawing of the second tranche, and 13,976 upon the drawing of the third tranche. The Company intends to use the proceeds from the term loan agreement to support the ongoing development of its late-stage clinical pipeline.