Pharmaceutical company PDL BioPharma Inc (NASDAQ:PDLI) revealed on Thursday that it has entered into a securities purchase agreement with Evofem Biosciences Inc (NASDAQ:EVFM) to invest a total of up to USD60m in a private placement of securities.

The financing provides Evofem with the capital to prepare for the launch of Amphora (L-lactic acid, citric acid and potassium bitartrate), a novel, investigational non-hormonal, on-demand female contraceptive.

Under the first tranche, PDL invested USD30m to purchase 6,666,667 shares of Evofem common stock at USD4.50 per share, and was also issued warrants to purchase up to 1,666,667 shares of Evofem common stock exercisable for seven years beginning six months after the issuance date at an exercise price of USD6.38 per share.

Upon closing of the first tranche, PDL holds approximately 19% of the common stock of Evofem.

Additionally, PDL has the right to purchase an additional 6,666,667 shares of Evofem common stock at USD4.50 per share in a second USD30m tranche on or before 10 June 2019 alongside two existing Evofem shareholders, which have the right to invest up to USD10m each.

Following completion of the second tranche, PDL expects to become one of the largest shareholders in Evofem, owning approximately 29% of the company's common stock. PDL will have the right to appoint one member to Evofem's board and a limited right to have one non-voting observer participate in Evofem board meetings.