Evofem Raises $706K via 12% Note with HUB Cyber Security Amid Liquidity Crunch
EVFM has more than doubled off its 52-week low of $0.001.
Summary
Evofem Biosciences secured $706,304 through an 11-month subordinated note with HUB Cyber Security, carrying a 12% annual interest rate compounded monthly. The deal includes a $2,000 weekly monitoring fee and a one-time $14,126 administration fee, all due at maturity. The note is prepayable without penalty and imposes covenants restricting mergers and asset sales without consent. This follows the company's Q1 10-Q, which highlighted severe liquidity issues and a going concern warning. The high-cost, short-term nature of the financing underscores the company's desperate cash position and limited options. Proceeds are earmarked for ongoing operations, but the terms suggest creditors are demanding steep premiums for risk.
At the time of this announcement, EVFM was trading at $0.01 on OTC in the Life Sciences sector, with a market capitalization of approximately $1.1M. The 52-week trading range was $0.00 to $0.02. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.