Evofem Biosciences, Inc. announced that it has entered into a securities purchase agreement with certain investors for the private placement of senior subordinate convertible notes due in the aggregate original principal amount of $538,461.54 and warrants to purchase an aggregate 26,923,077 shares of common stock, par value $0.0001 per share on March 20, 2023. Each investor paid approximately $650 for each $1,000 of the principal amount of notes and warrants. The net amount of proceeds to the company from the offering, after deducting expenses from the offering was approximately $295,000.

The notes will be the senior subordinate obligations of the company and not the financial obligations of its subsidiaries. The principal amount of the notes accrue interest at a rate of 8% per annum, which will adjust to 12% upon an event of default. The notes are convertible at conversion price of $0.02 per share, subject to adjustment as described therein.

Unless earlier converted, or redeemed, the notes will mature on the third anniversary of their issuance date.