Evofem Biosciences Taps HUB Cyber Security for $706K Subordinated Note as Liquidity Tightens

summarizeSummary

Evofem Biosciences entered into a $706,304 subordinated promissory note with HUB Cyber Security, using the funds to pay suppliers for its key products. The high-cost debt adds to existing liquidity pressures and includes restrictive covenants.

check_boxKey Events · Financing and Capital Events · EVFM

• Subordinated Note Issued

  On July 8, 2026, Evofem issued a $706,304 subordinated promissory note to HUB Cyber Security, bearing 12% annual interest and maturing in 11 months.

• High Cost of Capital

  Beyond the stated interest, the note imposes a $2,000 weekly monitoring fee — roughly $94,000 over the term — and a one-time $14,126 administration fee, sharply raising the effective cost.

• Restrictive Covenants

  During an event of default, the note prohibits Evofem from merging, selling assets, dissolving, or making payments to non-employee shareholders without HUB's consent.

• Use of Proceeds

  Proceeds are restricted to supplier payments for the manufacture and distribution of Phexxi and Solosec, signaling a focus on maintaining product supply.

auto_awesomeAnalysis · EVFM · Life Sciences

Already under a going-concern warning and in default on its senior debt, Evofem Biosciences has secured a $706,304 subordinated loan from HUB Cyber Security. The note carries a 12% interest rate, an 11-month maturity, and additional fees that total roughly $108,000 if held to maturity. Proceeds are earmarked solely for supplier payments to keep Phexxi and Solosec production going — a lifeline that buys time but adds another layer of debt behind the senior obligations held by Future Pak. The negative covenants, including a prohibition on mergers or asset sales without HUB's consent, further constrain management's options. For a company with a market cap near $1.1 million and a stock price under a penny, this financing is a critical survival move, but the terms reflect the extreme risk lenders perceive.