Evofem Biosciences, Inc. entered into a securities purchase agreement for the private placement of senior subordinate convertible notes for gross proceeds of $769,230.760 along with warrants on April 5, 2023. The warrants are exercisable into 26,923,077 common shares at an exercise price of $0.01 per share. 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 a conversion price of $0.01 per share. Unless earlier converted, or redeemed, the notes will mature on March 6, 2026. The securities have been issued pursuant to exemption provided under Regulation D.

On the same date, Evofem Biosciences, Inc. closed the transaction. The company issued notes for gross proceeds of $538,461.540 and warrants to purchase 76,923,077 common shares. Each investor paid approximately $650 for each $1,000 of the principal amount of notes and warrants. The net amount of proceeds after deducting expenses from the offering was approximately $490,000.