AKAO 2017 Annual Report

140 indebtedness or that could have a material adverse change on us. Upon the occurrence and for the duration of an event of default, an additional default interest rate equal to 3.0% per annum will apply to all obligations owed under the Loan Agreement. Termination of a Material Definitive Agreement. On February 26, 2018, we terminated the Loan and Security Agreement dated August 5, 2015, between us and Solar Capital Ltd. in connection with the entering into of the Loan Agreement. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information contained under the caption “Entry into a Material Definitive Agreement” above is incorporated by reference into this section. Other Information. On February 27, 2018, we entered into a sales agreement (the “2018 Sales Agreement”) with Cowen and Company, LLC (“Cowen”), under which we may issue and sell from time to time up to $50.0 million of our common stock through Cowen as our sales agent. Sales of our common stock, if any, will be made at market prices by any method that is deemed to be an “at the market” offering as defined in Rule 415 under the Securities Act, including sales made directly on the Nasdaq Global Market or any other trading market for our common stock. If authorized by us in writing, Cowen may purchase shares of our common stock as principal. Under the terms of the 2018 Sales Agreement, the aggregate compensation payable to Cowen as sales agent equals up to 3.0% of the gross sales price of the shares sold through it pursuant to the 2018 Sales Agreement. We have also agreed to reimburse Cowen up to $40,000 of Cowen’s actual outside legal expenses incurred by Cowen in connection with the offering of shares of our common stock pursuant to the 2018 Sales Agreement. Any shares issued pursuant to the 2018 Sales Agreement would be issued pursuant to our amended registration statement on Form S-3 (File No. 333-217787). The Company filed a prospectus supplement dated February 27, 2018 with the Securities and Exchange Commission in connection with the offer and sale of the shares pursuant to the 2018 Sales Agreement. The legal opinion of Latham & Watkins LLP relating to the shares of common stock that may be sold pursuant to 2018 Sales Agreement is filed as Exhibit 5.1 to this Annual Report on Form 10-K.