Femasys Inc. Secures Additional Financing with Strategic Investment from Investors led by PharmaCyte Biotech

- $6.85 million upfront investment provides $23 million total cash runway into second half 2025 -

- Financing allows for focused commercial team to bring Femasys’ infertility-related products to women in the U.S. -

- Additional financing supports the advancement of Femasys’ lead product candidate, FemBloc for permanent birth control, to initial clinical data readout -

ATLANTA, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Femasys Inc. (NASDAQ: FEMY), a biomedical company focused on meeting significant unmet needs for women worldwide with a broad portfolio of in-office, accessible solutions, including a lead, late-clinical stage product candidate and innovative therapeutic and diagnostic products, today announced a strategic upfront investment of $6.85 million by public biotech company, PharmaCyte Biotech, Inc. (Nasdaq: PMCB) and other healthcare investors.

Femasys is creating accessible innovative options for women, as exemplified by its lead product candidate, FemBloc, in late-stage clinical development for permanent birth control and FDA-cleared product, FemaSeed for infertility treatment (also approved in Canada). The Company is commercializing complementary diagnostic products that were internally developed through its in-house manufacturing capabilities, with regulatory approvals in the U.S., Canada, and other ex-U.S. territories.

“We are thrilled to announce this strategic investment, which coupled with other recent financing activities, will allow Femasys to commercialize our infertility-related products, FemaSeed and FemVue. This financing will enable us to implement a targeted commercial team to increase our revenue potential, while delivering on our mission to bring safe, accessible, and novel options to women,” said Kathy Lee-Sepsick, founder, president and chief executive officer of Femasys. “In addition, this financing supports Femasys’ continued progress of our FemBloc pivotal clinical trial as we advance this important non-surgical solution for permanent birth control.”

The strategic investment in Femasys is in the form of $6.85 million aggregate principal amount of a senior unsecured convertible note which matures November 2025 and is convertible at $1.18. Under the terms of the investment, the investors were also issued two series of warrants: warrants to purchase approximately 5.8 million shares of common stock at an exercise price of $1.18 per share expiring one year from issuance and warrants to purchase approximately 5.8 million shares of common stock at an exercise price of $1.475 per share expiring five years from issuance. If exercised for cash, these warrants could result in proceeds of up to an additional $15.4 million. There can be no assurance that these warrants will ever be exercised. As part of the terms of the investment, seasoned life sciences executive, Joshua Silverman, current interim chief executive officer of PharmaCyte, will be joining the Femasys board of directors.