Evofem Obtains Forbearance From Debtholders For Existing Matters

(RTTNews) - Evofem Biosciences, Inc. announced the successful restructuring of its debt, providing forbearance from debtholders related to all existing events of default. All holders of junior unsecured debt obligations have exchanged these obligations into rights to acquire the company's common stock. Also, the remaining unsecured creditor, Adjuvant Capital, exchanged 10% of its unsecured debt obligations into rights to acquire Evofem's common stock.

"This debt restructuring removes the overhang created by the Nasdaq delisting last month while securing ongoing forbearance from current defaults," said Saundra Pelletier, Evofem's CEO.

The company noted that the healthcare investor that provided $25 million to Evofem under the April 2020 Securities Purchase and Security Agreement agreed to accept future interest payments as payment-in-kind instead of cash.