EMERYVILLE, Calif.--(BUSINESS WIRE)--NovaBay® Pharmaceuticals, Inc. (NYSE MKT: NBY), a biopharmaceutical company focusing on commercializing prescription Avenova® lid and lash hygiene for the domestic eye care market, announces the closing of a $4.0 million tranche of a previously-announced private placement of common stock and warrants to accredited investors, bringing total proceeds to $11.791 million. The first tranche of the private placement with proceeds of $7.791 million was completed in May 2016.
In the two tranches, investors purchased an aggregate 6,173,299 shares of NovaBay common stock and warrants exercisable for 3,086,651 shares of NovaBay common stock at a purchase price of $1.91 per unit. The warrants have a four-year term from the date of issuance, an exercise price of $1.91 per share and are callable by NovaBay if the closing price of its common stock as reported by the NYSE MKT is $4.00 per share or greater for five consecutive trading days. Should all warrants be exercised, gross proceeds will total approximately $5.9 million, and the total amount raised in this financing will be nearly $18 million.
Investors participating in the private placement include current stockholders Mr. Jian Ping Fu and Pioneer Pharma (Singapore) Pte. Ltd. Pioneer Pharma (Singapore) Pte. Ltd., together with its affiliates, is NovaBay’s largest shareholder. China Kington Asset Management Co. Ltd. acted as the sole placement agent for the sales to Mr. Fu, Pioneer Pharma (Singapore) Pte. Ltd. and three other investors. NovaBay’s Chairman, President and CEO Mark M. Sieczkarek, as well as other accredited investors, also participated in the private placement.
“The NovaBay team is dedicated to increasing sales of Avenova and managing expenses to meet our goal of positive cash flow from operations by the end of 2016,” said Mr. Sieczkarek.
“We are fully committed to NovaBay as its long-term financial partner,” said Eric Wu, Partner and Senior Vice President of China Kington Asset Management. “We are excited about Avenova and the numerous benefits it brings to individuals afflicted with chronic blepharitis and dry eye. We also are highly supportive of management’s execution on innovative marketing and sales strategies aimed at increasing prescriptions and sales of Avenova.”
This press release does not constitute an offer of securities. These securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. As part of the transaction, NovaBay filed a registration statement with the Securities and Exchange Commission specific to certain investors for purposes of registering the resale of a portion of (i) the shares of common stock sold to the investors, and (ii) the common stock issuable upon the exercise of the warrants.
About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics
NovaBay
Pharmaceuticals is a biopharmaceutical company focusing on the
commercialization of prescription Avenova® lid and lash
hygiene for the eye care market. Avenova is formulated with Neutrox®,
which is cleared by the U.S. Food and Drug Administration (FDA) as a
510(k) medical device. Neutrox is NovaBay’s pure hypochlorous acid.
Laboratory tests show that hypochlorous acid has potent antimicrobial
activity in solution yet is non-toxic to mammalian cells and also
neutralizes bacterial toxins. Avenova is marketed to optometrists and
ophthalmologists throughout the U.S. by NovaBay’s direct medical
salesforce. It is accessible from more than 90% of retail pharmacies in
the U.S. through agreements with McKesson Corporation, Cardinal Health
and AmeriSource Bergen.
Forward-Looking Statements
This release contains
forward-looking statements, which are based upon management's current
expectations, assumptions, estimates, projections and beliefs. These
statements include, but are not limited to, statements regarding the
anticipated market acceptance of our products, future sales of our
products, and the Company’s expected future financial results.
Forward-looking statements in this release can be identified by the
words “expect,” “believe,” and “approximately,” or variations of these
words. These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or achievements to be
materially different and adverse from those expressed in or implied by
the forward-looking statements. Factors that might cause or contribute
to such differences include, but are not limited to, risks and
uncertainties relating to difficulties or delays in manufacturing,
distributing, and selling the Company's products, unexpected adverse
side effects or inadequate therapeutic efficacy of our product, the
uncertainty of patent protection for the Company's intellectual
property, and the Company's ability to obtain additional financing as
necessary. Other risks relating to NovaBay’s business, including risks
that could cause results to differ materially from those projected in
the forward-looking statements in this press release, are detailed in
NovaBay's latest Form 10-K and Form 10-Q filings with the Securities and
Exchange Commission, especially under the heading "Risk Factors." The
forward-looking statements in this release speak only as of this date,
and NovaBay disclaims any intent or obligation to revise or update
publicly any forward-looking statement except as required by law.
Stay informed on NovaBay's progress:
Download
our Mobile InvestorApp from the Apple
Store or Google
Play
Like us on Facebook
Follow
us on Twitter
Connect
with NovaBay on LinkedIn
Join
us on Google+
Visit
NovaBay's
Website