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SAN DIEGO, CA - Evofem Biosciences, Inc. (OTCQB:OTC:EVFM), a biopharmaceutical company with annual revenue of $19.36 million, has entered into a securities purchase agreement with Aditxt, Inc., securing approximately $750,000 in net proceeds. According to InvestingPro data, the company operates with a significant debt burden and faces challenges with cash burn, making this funding crucial for its operations. The agreement, effective Monday, involves the issuance of senior subordinated convertible notes and warrants.
On Monday, the initial closing of the transaction took place, with Evofem issuing notes totaling $1,153,846 in principal and warrants to purchase 74,925,075 shares of common stock. Aditxt purchased the notes and warrants at a discount, paying approximately $650 for each $1,000 of principal. The full investment was not completed by the deadline, but Evofem waived the default, allowing Aditxt until April 16, 2025, to fulfill the remaining balance, or face potential termination of their merger agreement.
The warrants are exercisable at $0.0154 per share and include a cashless exercise option, with a potential adjustment of the exercise price based on market conditions. They are valid for five years from the issuance date.
The notes carry an 8% annual interest rate, maturing on April 8, 2028, with provisions for a 12% rate in case of default. Convertible at $0.0154 per share, the notes have a beneficial ownership limitation, preventing holders from exceeding a 9.99% ownership stake in Evofem post-conversion. The company’s current total debt stands at $45.97 million, with a concerning current ratio of 0.17, indicating potential liquidity challenges. InvestingPro subscribers can access 13 additional key insights about Evofem’s financial health.
Evofem has outlined various covenants in the agreement, including restrictions on incurring debt and liens, as well as limitations on paying dividends or redeeming capital stock.
Additionally, a call option agreement was signed on April 10, 2025, between Aditxt, Evofem, and Adjuvant Global Health (NSE:GLOH) Technology Fund, L.P. This grants Aditxt the option to purchase convertible notes and rights to common stock from Adjuvant for $13 million, contingent on the satisfaction of certain conditions.
This financial maneuver is part of Evofem’s broader strategy to secure funding and manage its capital structure, particularly important given its market capitalization of just $1.02 million. While analysts expect revenue growth this year, the company’s financial health score remains fair, according to InvestingPro analysis. The information presented is based on a press release statement and InvestingPro data.
In other recent news, Evofem Biosciences has amended its agreement with Windtree Therapeutics for the manufacturing and supply of PHEXXI, a non-hormonal contraceptive. The amendment, known as Amendment 1, introduces clarifications to the initial License and Supply Agreement, addressing potential supply chain disruptions and delivery dates. This development was disclosed in a Form 8-K filed with the SEC, providing investors with the latest contractual updates. In a related update, Windtree Therapeutics announced its role as the sourcing partner for PHEXXI, highlighting its potential to reduce manufacturing costs and enhance profitability. Evofem Biosciences retains ownership and continues its commercialization efforts, with annual revenues from PHEXXI sales exceeding $19 million in 2024. Meanwhile, a leading technology company has announced the immediate departure of its CEO as part of a strategic restructuring. The company is exploring the sale of underperforming divisions and focusing on core growth areas to optimize its portfolio. An interim CEO, formerly the COO, has been appointed to maintain strategic direction during the search for a permanent successor.
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