Aditxt, Inc. (ADTX) and Evofem Biosciences, Inc. (EVFM), on Tuesday announced a deal allowing Aditxt to buy Evofem for around $100 million, by issuing a combination of common and preferred stock, and the assumption of certain senior indebtedness. <\/p>\n
ADTX was trading up by 83.95 percent at $6.99 per share on the Nasdaq. <\/p>\n
The companies noted: “The Transaction is intended to create significant strategic advantages for both companies. Evofem’s growing revenue base may allow Aditxt to catalyze future growth by leveraging synergies by and amongst Evofem, Aditxt, and Aditxt’s other subsidiaries. The boards of directors of both companies have unanimously approved the Transaction.”<\/p>\n
Under the terms, Aditxt has assumed Evofem’s senior secured debt and shall pay $5 million to Evofem’s senior secured debt holder by year-end 2023, $8 million by September 2024, and up to an additional $5 million thereafter.<\/p>\n
Aditxt has also agreed to provide a $3 million loan to Evofem between the date of signing of the deal and closing and to cover Evofem’s legal costs related to the transaction. <\/p>\n
At closing, the holders of Evofem’s shareholders will exchange their shares for an aggregate of 610,000 shares of Aditxt. <\/p>\n
In addition, Aditxt has agreed to issue up to an aggregate of 89,126 shares of preferred stock to the holders of Evofem’s currently outstanding unsecured notes, purchase rights, certain warrants, and preferred stock. <\/p>\n
Aditxt aims to boost Evofem into the global non-hormonal birth control market valued at $27.7 billion in 2022, and is projected to grow to $52.2 billion by 2031. <\/p>\n