Evofem restructures debt as creditors obtain rights to acquire shares

Sep. 16, 2022 6:54 AM ETEvofem Biosciences, Inc. (EVFM)By: Dulan Lokuwithana, SA News Editor4 Comments

business hand pushing debt restructuring button

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  • Evofem Biosciences, Inc. (OTC:EVFM), a biopharma focused on women's sexual and reproductive health, announced on Friday that the company concluded a successful debt restructuring process, giving creditors the rights to acquire its common stock.
  • The restructuring has provided EVFM with forbearance from its debtholders related to all events of default, and as a result, creditors will refrain from taking legal action regarding debt repayments.
  • As part of the process, all junior unsecured debt holders have agreed to exchange their obligations for rights to acquire EVFM's common stock.
  • The unsecured creditor, Adjuvant Capital, which provided the company with $25M in 2020 as a strategic investment, has agreed to exchange 10% of its obligation into rights to acquire the common stock.
  • "This debt restructuring removes the overhang created by the Nasdaq delisting last month while securing ongoing forbearance from current defaults," Chief Executive Saundra Pelletier remarked.
  • Last month, the trading of EVFM shares moved to the OTC market after delisting from the Nasdaq Capital Market due to failure to meet the listing rules.

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