Dare Bioscience secures $12M in royalty-backed investment structure

Dare Bioscience has entered into a royalty-backed financing agreement that provides Dare with $5 million at closing and up to an additional $7 million through three tranches over time at Dare’s option. The financing structure entitles the investor to a percentage of the royalties and milestones to be received by Dare under its global license agreement for XACIATO with Organon only until the investor achieves a targeted return on investment. Dare 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 of 12% on all advances, all future royalty and milestone payments related to XACIATO revert to Dare. Dare may terminate the agreement at any time by repaying the amounts advanced plus the IRR. In connection with the closing, Dare issued to the investor a five-year warrant to purchase an aggregate of 5 million shares of Dare’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, Dare 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.