Evofem Biosciences, Inc. (EVFM) announced the public offering of its common stock after which the EVFM stock price saw a downtrend of 21.03% today to drop at $1.84 as of this writing. EVFM stock was down by 9.34% at the previous closing. So what you need to know now?
Public Offering of EVFM Common Stock
Evofem Biosciences, Inc. (EVFM) is a biopharmaceutical company mainly focused on women’s sexual and reproductive health through the development and commercializing of its various products. EVFM stock recently announced the offering of 17,142,857 shares of its common stock at $1.75 per share public price. Underwriters are granted a 30-day option to buy up to additional 2,571,428 shares worth $4.5 million of Evofem common stock at the public offering price less than the underwriting discounts and commissions. $30 million gross proceeds are estimated for this offering without deducting the underwriting discounts, commissions, and other related expenses. The offering will end on March 29, 2021.
EVFM is planning to use the net proceeds resulted from this offering in various areas including the commercialization of Phexxi (lactic acid, citric acid, and potassium bitartrate) a contraceptive vaginal gel for the prevention of pregnancy, in the united states of America. Furthermore, these net proceeds will support the advertising activities across television as well as streaming and digital channels of Evofem. Some part of these net proceeds will help in the continuation of phase 3 clinical analysis of EVOGUARD and its related activities in which EVFM is observing the EVO100 for the prevention of infections that transmit sexually.
“Get Phexxi”: A Marketing campaign
Evofem started the “Get Phexxi” campaign on Valentine’s day via television, streaming, and digital channels that achieved significant results according to the EVFM officials. The campaign resulted an increase of 73% in ex-factory sales of Phexxi in February 2021 and these sales of the first quarter of 2021 exceeded the full-year sales level of 2020 by March 12. Evofem stock distributed 2,400 Phexxi units in February 2021 which is 30% higher than the prior month.
The penny EVFM stock price is continuing the downtrend in the stock market today following the public offering of shares of its common stock and no one knows how long this bearish sentiment will continue. Though EVFM got significant results in its marketing campaign of Phexxi still more development is required for future growth.