Evofem Biosciences Inc. Retires Debt Instruments Following May 2022 Public Offering

May 2022 Offering Leads to Retirement of Debt Instruments

Evofem Biosciences Inc., a biopharmaceutical company focused on women’s health and wellness, has continued its financial success with the retirement of debt instruments in 2022. The recent May 2022 public offering, which raised over $20 million, has allowed the company to redeem and retire several long-standing debt instruments.

Following the May 2022 offering, the company was able to redeem $5.9 million of the May 2022 Notes, which originally had an embedded interest rate of 18% during default and a redemption premium of 125% for outstanding amounts. The complete exchange of the debt instruments led to the retirement of 2,100 shares of Series B-2 Convertible Preferred Stock, 1,700 shares of Series C Convertible Preferred Stock, and 4,266 shares of the Company’s Common Stock. It’s worth noting that all exchange transactions were cashless.

Debt Retirement Continues With Extension of Maturity Dates for May 2022 Notes

The financial boost brought on by the May 2022 Public Offering has not only permitted the company to retire these debt instruments but also allowed it to extend the maturity date of its remaining May 2022 Notes until October 31, 2022. The success of the offering ensured that the holders of these Notes forfeited their right to Subsequent Transaction Optional Redemption concerning the Qualified Underwritten Offering.

Further debt transactions, combined with solid financial standing, have led to additional retirements of debt instruments in the latter half of 2022. Most notably, the May 2022 Notes Purchasers collectively agreed to exchange their outstanding balance of the May 2022 Notes for purchase rights to receive 832,237 shares of common stock. This action resulted in the May Notes no longer being outstanding as of December 31, 2022.

Financial Diversification with February and March 2023 Notes Issuance

In December, the company also engaged in the issuance of February and March 2023 Notes, raising additional capital and diversifying their financial portfolio. Upon the closing of these subsequent notes issuances, the conversion and strike prices of several outstanding notes and warrants, including the Baker Notes, May 2022 Common Warrants, Adjuvant Notes, and December 2022 Notes, were adjusted appropriately.

Positive Outlook for Evofem Biosciences

Evofem Biosciences’ solid financial footing and ability to retire debt instruments demonstrate the potential for further growth and stability. This puts the company in a strong position to continue developing new products and providing unique solutions for women’s health and wellness needs. The public offering and financial progress of Evofem Biosciences serve as a testament to the robustness of its product portfolio, investor trust, and future market potential.

Investing in and reducing debt has allowed Evofem Biosciences to focus on its core business of women’s health and the further development of its product pipeline. The successful May 2022 Public Offering demonstrates investor confidence in the company and its product pipeline. As the company takes advantage of this financial surge, the future looks bright for Evofem Biosciences and its investors.

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