Repays Secured Convertible Promissory Note
EMERYVILLE, Calif. (September 8, 2020) – NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) announces the availability of “subscribe & save” for repeat orders of Avenova® antimicrobial lid & lash solution on Avenova.com and Amazon.com.
“Our upgraded online product listings will allow customers to automate recurring orders, thereby increasing our recurring revenue and improving visibility on future sales,” said Justin Hall, NovaBay CEO. “We are already seeing great popularity with the subscription feature, indicating a loyal customer following for Avenova.
“Under the program, subscribers are eligible to receive a discount of up to 10% on repeat deliveries. And, for a limited time, customers can save an additional 10% on their initial subscription shipment by using coupon code ‘10avenova.’ Due to expected popularity, we have also made the program available for our NovaWipes and NovaSight™ Eye Health Supplement products on Amazon.com,” he added.
The Company further announces that it has made the final payment on a $2.2 million Secured Convertible Promissory Note in accordance with its terms.
“The repayment of the convertible note is also significant for our shareholders as it supports the ongoing strengthening of our balance sheet and future cash position to support current and future growth initiatives,” Mr. Hall explained. “It also contributes to our confidence that we will regain compliance with the NYSE American listing standards at the end of the compliance period in mid-October.
“All of these initiatives are further steps in our ability to adapt and thrive in the challenging COVID-19 environment and position the Company for a bright future post-pandemic,” Mr. Hall concluded.
In March 2019, NovaBay issued a $2.2 million Secured Convertible Promissory Note bearing interest of 10% per annum to Iliad Research and Trading, L.P. Under the Secured Convertible Promissory Note, the Company was required to make recurring monthly cash payments of $200,000.
About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics®
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focusing on commercializing and developing its non-antibiotic anti-infective products to address the unmet therapeutic needs of the global, topical anti-infective market with its two distinct product categories: the NEUTROX® family of products and the AGANOCIDE® compounds. The Neutrox family of products includes AVENOVA® for the eye care market, CELLERX® for the aesthetic dermatology market and NEUTROPHASE® for the wound care market. The Aganocide compounds, still under development, have target applications in the dermatology and urology markets.
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial progress and future financial performance of NovaBay Pharmaceuticals, Inc. This release contains forward-looking statements that are based upon management’s current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding our listing with the NYSE, our business strategies and current product offerings, the financial impact of the Subscribe & Save program, the impact of repaying the convertible note will have on our future finances, as well as generally the Company’s expected future financial results. These forward-looking statements are identified by the use of words such as “will,” “growth,” “continued,” and “future cash position,” among others. 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 the size of the potential market for our products, the possibility that the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the Company’s cash needs, and any potential regulatory problems. 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-Q/K 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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