Evofem Biosciences, Inc. entered into a securities purchase agreement for the private placement of senior subordinate convertible notes for gross proceeds of $1,500,000 along with warrants on July 3, 2023. The warrants are exercisable into 1,200,000 common shares at an exercise price of $1.25 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 and will mature on March 6, 2026.

The notes are convertible at a conversion price of $1.25 per share. The securities have been issued pursuant to exemption provided under Regulation D. The company received net proceeds of $965,000.