Daré Bioscience Secures $12 million in Royalty-backed Investment Structure

$5 million at closing and up to $7 million of additional committed funding

SAN DIEGO, Dec. 26, 2023 (GLOBE NEWSWIRE) -- Daré Bioscience, Inc. (NASDAQ: DARE), a leader in women’s health innovation, today announced it has entered into a royalty-backed financing agreement that provides Daré with $5 million at closing and up to an additional $7 million through three tranches over time at Daré’s option. The financing structure entitles the investor to a percentage of the royalties and milestones to be received by Daré under its global license agreement for XACIATO with Organon only until the investor achieves a targeted return on investment.

“This advance against a percentage of future net payments we receive under our license agreement for XACIATO provides us with capital at an opportune time to drive shareholder value through the continued advancement of our late-stage portfolio of product candidates,” stated Sabrina Martucci Johnson, Daré’s President and Chief Executive Officer. “This financing exemplifies our commitment to being creative, collaborative and opportunistic in seeking capital at an attractive cost to advance our late-stage candidates – all of which represent a first-in-category opportunity – while seeking to continue to deliver value for all Daré stakeholders.”

Terms of the Agreement

Daré received $5 million from the investor at closing and has the option to draw an additional $7 million in tranches of up to $3 million each through December 31, 2026. Once the investor receives a targeted internal rate of return (IRR) of 12% on all advances, all future royalty and milestone payments related to XACIATO revert to Daré. Daré may terminate the agreement at any time by repaying the amounts advanced plus the IRR.

In connection with the closing, Daré issued to the investor a five-year warrant to purchase an aggregate of 5 million shares of Daré’s common stock at an exercise price of $0.3467 per share, representing a 10% premium to the prior day’s closing price. In addition, in connection with each future advance of $1 million, if any, Daré agreed to issue additional five-year warrants to purchase up to 1 million shares of common stock at an exercise price of $0.3467 per share.

Additional information regarding the transaction is available in Daré’s Current Report on Form 8-K filed with the Securities and Exchange Commission today.

About Daré Bioscience

Daré Bioscience is a biopharmaceutical company committed to advancing innovative products for women’s health. The company’s mission is to identify, develop and bring to market a diverse portfolio of differentiated therapies that prioritize women's health and well-being, expand treatment options, and improve outcomes, primarily in the areas of contraception, vaginal health, reproductive health, menopause, sexual health and fertility.