Benzinga | May 18, 2021 09:06AM EDT

Evofem Biosciences Stock Plunges On Raising $50M Via Equity At 22% Discount

* Evofem Biosciences Inc (NASDAQ: EVFM) has priced its previously announced underwritten public offering of 50 million shares and accompanying short-term warrants to purchase up to an aggregate of 50 million shares.

* The offer price of $1.00 per share represents a discount of 22% from the last close price of $1.28 on Monday.

* The short-term warrants have an exercise price of $1.00 per share, are exercisable immediately, and expire two years following the date of issuance.

* The gross proceeds are expected to be $50 million. Full exercise of the warrants would generate additional proceeds of $50 million.

* An underwriter has an option to purchase up to an additional 7.5 million shares or warrants to purchase up to an additional 7.5 million shares.

* The offering is expected to close by May 20.

* Evofem intends to use the proceeds for commercialization activities related to Phexxi, its ongoing EVOGUARD Phase 3 clinical trial evaluating EVO100 to prevent chlamydia and gonorrhea in women.

* Price Action: EVFM shares are down 37.5% at $0.80 during the premarket session on the last check Tuesday.