aibioEvofem Biosciences issues $706,304 subordinated note to HUB Cyber Security
Tickers EVFM
Evofem issued a $706,304 subordinated note to HUB Cyber Security, Ltd. The 12% note matures eleven months after July 8, 2026, and accrues a $2,000 weekly monitoring fee plus a one-time administration fee of $14,126.
Key facts
- Company
- Evofem Biosciences, Inc. (OTC: EVFM)
- News type
- Debt Financing
- Primary source
- SEC filing (Form 8-K)
Evofem Biosciences, Inc. entered into a promissory note with HUB Cyber Security, Ltd., referred to as HUB, on July 8, 2026. The offering closed the same day, and the company issued a note in an aggregate principal amount of $706,304. The company's Form 8-K, dated July 14, 2026 and signed by Chief Executive Officer Saundra Pelletier, says the net proceeds to the company were approximately $706,304. The filing names no placement agent, underwriter or advisor.
Interest, fees and maturity
The note accrues interest at 12% a year, compounded monthly. It matures after eleven months from July 8, 2026, unless it becomes due earlier. It also accrues a Monitoring Fee of $2,000 a week from the issue date until the note and related amounts are paid in full. The filing puts the monitoring fee at approximately $94,000 if the note stays outstanding through maturity. A one-time administration fee of $14,126 also accrues. The company must pay both fees, and all accrued interest and principal, on the maturity date.
The note may be prepaid in whole or in part at any time without premium or penalty.
The filing states that the net proceeds were approximately $706,304, the same amount as the principal. The monitoring and administration fees are payable at maturity on top of that.
Restrictions on the company
The note bars the company from entering specified transactions, including mergers, business combinations and similar deals, and from amending its organizational documents, unless HUB consents in writing. Other covenants say the company will not merge or consolidate into another entity, will not sell all or substantially all of its assets, will not dissolve, wind up or start a bankruptcy proceeding, and will not materially change the nature of its business. It also bars payments to any non-employee shareholder while an event of default is continuing, and requires notice of judgments or decrees against the company.
Events of default include incorrect representations, a failure to pay within three days of a due date, bankruptcy or insolvency, an involuntary bankruptcy petition, judgments not resolved within 30 days, and failure to perform any covenant. If a default occurs, HUB may require the company to redeem all or part of the note in cash, with accrued interest and fees. The defaults alleged by the company's senior noteholder are excluded from the note's events of default.
The note is subordinate to the company's other obligations. The filing does not describe the defaults the senior noteholder alleged.
The company and its products
Evofem describes itself as a San Diego-based commercial-stage company focused on women's sexual and reproductive health. Its first product, PHEXX, was approved by the FDA on May 22, 2020, as a non-hormonal contraceptive vaginal gel. The company acquired global rights to SOLOSEC in July 2024 and relaunched the brand in November 2024. SOLOSEC is a single-dose oral antimicrobial for bacterial vaginosis and trichomoniasis.
The company licensed PHEXX and SOLOSEC rights in the Middle East and North Africa to Pharma 1 Drug Store, LLC. The 10-K says Pharma 1 expected to launch PHEXX in the United Arab Emirates in 2026. The company also hopes to cut the cost of making both products by approximately 55% to 60% once it sells product made under new manufacturing contracts in 2027. That is a goal, not a result.
Losses and cash
The 10-K filed March 11, 2026 reports net income of $391,000 for 2025, compared with a net loss of $8.9 million for 2024. Cash used in operations was $2.0 million in 2025 and $3.9 million in 2024. Year-end cash and cash equivalents were $578,000 at the end of 2025 and $741,000 at the end of 2024.
Year-end 2025 cash of $578,000 was below the $706,304 principal of the new note, which accrues interest and fees on top of that amount.
What comes next
The note matures eleven months after July 8, 2026. The monitoring fee of $2,000 a week accrues until the note is paid, and HUB can require cash redemption after a default. The 8-K describes no repayment plan or other financing for the company.