NovaBay Pharmaceuticals Completes $11.8 Million Private Placement
August 02 2016 - 06:50AM
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
AntibioticsNovaBay 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 StatementsThis 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.
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NovaBay ContactsFor NovaBay
Avenova purchasing information, please contact:Email usCall us:
1-800-890-0329www.Avenova.comorFrom the
CompanyThomas J. PaulsonChief Financial
Officer510-899-8809Contact TomorInvestor
Contact:LHAJody Cain, 310-691-7100Jcain@lhai.com
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