Evofem Biosciences, Inc. announced that it has entered into a securities purchase agreement with certain investors to issue senior subordinate convertible notes due in the aggregate original principal amount of $1,000,000 and warrants to purchase an aggregate 799,999 shares of common stock, par value $0.0001 per share for the gross proceeds of $650,000 on August 4, 2023. Each investor paid approximately $650 for each $1,000 of the principal amount of notes and warrants. The warrants are exercisable into shares of common stock at an exercise price of $1.25 per share.

The Warrants expire on the fifth anniversary date from the Issuance Date. 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 $1.25 per share, subject to adjustment as described therein.

Unless earlier converted, or redeemed, the notes will mature on August 4, 2026, subject to the right of the investor to extend the date if an event of default under the notes has occurred and is continuing and for a period of 20 business days after the consummation of a fundamental transaction if certain events occur.