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 $2,884,615, Series A warrants to purchase an aggregate of 22,189,349 shares of common stock the Company, par value $0.0001 and Series B warrants to purchase an aggregate of 4,807,692 shares of Common Stock for the gross proceeds of $3,548,070 on September 27, 2023. Each Investor is paid approximately $650 for each $1,000 of the principal amount of notes and warrants. The net amount of proceeds after the offering costs to the company from the offering was approximately $1.5 million. The Series A Warrants are exercisable into shares of Common Stock at an exercise price of $0.13 per share and allow for cashless exercise. Investors with Series B Warrants prepaid $0.129 per share, which have a nominal subsequent exercise price of $0.001. The Notes will be the senior subordinate obligations of the company and not the financial obligations of our 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 a conversion price of $0.13 per share, subject to adjustment as described therein. Unless earlier converted or redeemed, the Notes will mature on September 27, 2026.
The company has received $2,884,615 from 14 investors pursuant to Regulation D.