EVFM - Evofem restructures debt as creditors obtain rights to acquire shares
- 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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Evofem restructures debt as creditors obtain rights to acquire shares