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The News
Aditxt, Inc. Enters Into Definitive Agreement To Acquire Evofem Biosciences For Consideration Of The Issuance Of A Combination Of Common Stock And Preferred Stock, And The Assumption Of Certain Senior Indebtedness, Having An Aggregate Amount Of ~$100M
BENZINGA 8:34 AM ET Dec-12-2023
Evofem posted $13.4 million in net sales of Phexxifor the first nine months of 2023;
Aditxt (ADTX.NaE) looks to accelerate 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
Aditxt, Inc. (ADTX.NaE) ("Aditxt" or the "Company") , a company dedicated to discovering, developing, and deploying promising health innovations, and Evofem Biosciences, Inc. (EVFM.NaE) ("Evofem") , a pioneer in women's health, today announced the signing of a definitive agreement (the "Agreement") under which Aditxt (ADTX.NaE) is to acquire Evofem in consideration of the issuance of a combination of common stock and preferred stock, and the assumption of certain senior indebtedness, having an aggregate amount of approximately $100 million (the "Transaction"). Pending a successful Transaction, it will also mark the establishment of a women's health mission within Aditxt's (ADTX.NaE) platform, aligning with global healthcare needs.
Revolutionizing Women's Reproductive Health with Phexxi®
Evofem is a commercial-stage women's health company with a strong focus on innovation. Evofem is the creator of the first and only FDA-approved hormone-free contraceptive gel, Phexxi® (lactic acid, citric acid, and potassium bitartrate). Phexxi® empowers women with a convenient, discreet, and flexible contraception method, putting control in their hands. By allowing on-demand usage within one hour before intercourse, Phexxi® addresses a critical need in the United States and global contraception market, offering women greater autonomy over their reproductive health decisions.
Phexxi® represents a groundbreaking shift in women's healthcare, offering a non-daily, hormone-free contraceptive choice for the 23 million women who need alternatives to traditional methods in the United States alone. Like male contraception, female contraception should be adaptable to personal needs – not a daily burden, irrespective of actual necessity. This innovation not only challenges the decades-long norm of daily hormonal contraception but empowers women with more personalized healthcare choices. Phexxi® is a testament to the urgent need for more focused innovation in women's health, ensuring choices are made for their benefit, not by chance or default.
Aditxt Unlocking Evofem's Global Potential for Non-Hormonal Contraception
The global need for effective family planning is evident, with nearly 1.1 billion women worldwide desiring contraception, according to the UN Department of Economic and Social Affairs. This demand is mirrored in the significant market growth projections for non-hormonal birth control; Growth Plus Reports highlights an increase from $27.7 billion in 2022 to $52.2 billion by 2031. The success of Phexxi® in the U.S., with an 82% approval rate for claims and escalating sales, reflects this rising demand. With Aditxt's (ADTX.NaE) acquisition of Evofem, there is an opportunity to leverage this momentum, access untapped markets, and potentially capture a significant global market share. This move is poised to meet commercial objectives and address a crucial aspect of women's healthcare. The power to decide when to have a family should rest firmly in each woman's hands, aligning with her life choices and aspirations and thus playing a crucial role in shaping her economic and social future.
Furthermore, Evofem's consistent sales growth aligns with the rising demand for innovative contraceptive solutions. The post-acquisition integration into the Aditxt (ADTX.NaE) platform will strengthen Evofem's ability to enter global markets through organic expansion, product acquisitions, and licensing agreements, positioning it to capture a substantial market share and address crucial women's healthcare needs globally.
Aditxt (ADTX.NaE) – A Platform for Accelerating Promising Innovations
As a company focused on discovering, developing, and deploying promising health innovations, Aditxt (ADTX.NaE) offers a dynamic environment dedicated to helping ground-breaking innovations thrive. As a public company with global stakeholders, Aditxt (ADTX.NaE) aims to engage society in supporting innovations addressing autoimmunity, health by the numbers, life-extending transplant technologies, population health, and now, with the proposed Evofem acquisition, women's health, rendering its collaborative ecosystem a powerful tool for realizing the full potential of each subsidiary.
Amro Albanna, co-Founder, chairman, and CEO of Aditxt (ADTX.NaE), shared his insights on this announcement: "At Aditxt (ADTX.NaE), our mission is to make promising innovations possible together. Evofem represents precisely the kind of groundbreaking innovation that aligns with our mission. Aditxt (ADTX.NaE) will provide Evofem with a global platform to amplify their transformative innovation in women's health. As we move forward, we aim to empower our shareholders to participate in this journey through their votes. This approach ensures that our stakeholders are integral in advancing these vital health innovations on the Aditxt (ADTX.NaE) platform, truly socializing how health innovations advance and impact lives worldwide."
"We are excited about the opportunity to accelerate our growth trajectory, as a subsidiary of Aditxt (ADTX.NaE), into a multi-product women's health franchise," said Evofem's CEO, Saundra Pelletier. "We believe this Transaction is in the best interests of our shareholders and are confident that they and the women we serve will benefit from our expanded offering and stronger voice."
Details of the Proposed Transaction
The Transaction is intended to create significant strategic advantages for both companies. Evofem's growing revenue base may allow Aditxt (ADTX.NaE) to catalyze future growth by leveraging synergies by and amongst Evofem, Aditxt (ADTX.NaE), and Aditxt's (ADTX.NaE) other subsidiaries. The boards of directors of both companies have unanimously approved the Transaction.
Aditxt (ADTX.NaE) has assumed Evofem's senior secured debt that was issued to the investor under the Securities Purchase and Security Agreement dated April 2020, as amended, and shall pay $5.0 million to Evofem's senior secured debtholder by year-end 2023, $8.0 million by September 2024, and up to an additional $5 million thereafter.
Aditxt (ADTX.NaE) has also agreed to provide a $3.0 million loan to Evofem between the date of signing of the Agreement and closing and to cover Evofem's legal costs related to the Transaction. At closing, the holders of Evofem's common stock will exchange their shares for an aggregate of 610,000 shares of Aditxt (ADTX.NaE) common stock. In addition, Aditxt (ADTX.NaE) 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. Upon closing of the Transaction, which is currently anticipated to occur in the first half of 2024, Evofem will be a wholly owned subsidiary of Aditxt (ADTX.NaE), with the Evofem management team to receive equity grants in the subsidiary of up to ten percent on a fully diluted basis after closing, and will continue to be led by Saundra Pelletier, Chief Executive Officer of Evofem, and the current management team.
The boards of directors of Aditxt (ADTX.NaE) and Evofem have unanimously approved the proposed Transaction. The Transaction is subject to, among other things, the approval of both Aditxt (ADTX.NaE) and Evofem stockholders and satisfaction or waiver of the conditions stated in the Agreement.
The description of the business combination contained herein is only a high-level summary. Additional information about the proposed Transaction, including a copy of the business combination agreement, will be provided in a Current Report on Form 8-K to be filed by Aditxt (ADTX.NaE) with the Securities and Exchange Commission ("SEC") and will be available at the SEC's website at www.sec.gov. In addition, Aditxt (ADTX.NaE) intends to file a registration statement on Form S-4 with the SEC, which will include a proxy statement/prospectus and will file other documents regarding the proposed Transaction with the SEC.
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