NovaBay Pharmaceuticals Receives $7 Million from Early Warrant Exercise
Key step in regaining NYSE shareholder equity listing requirement
Reiterates goal of reaching adjusted positive cash flow breakeven
EMERYVILLE, Calif. (October 3, 2016) – 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 that during the third quarter it has received $7 million from the early exercise of 3,673,462 warrants issued as part of five previously completed financings. NovaBay issued 3,673,462 shares of its common stock for the redeemed warrants. In addition to the $7 million received, based upon commitments already received from other warrant holders, NovaBay expects to receive at least another $400,000 from exercises in October.
The majority of the warrants exercised were issued with an $11.791 million private placement financing completed in two tranches that closed in May 2016 and August 2016. Additional warrants were exercised from private placement financings completed in July 2011, March 2015 and October 2015.
“These funds provide both financial stability by increasing our cash position to approximately $9 million and will support continued execution toward Avenova growth and commercialization,” said NovaBay’s Chairman and CEO Mark M. Sieczkarek. “This warrant exercise is also critical in regaining compliance with the NYSE MKT’s shareholder equity listing requirement as we close in on our goal of reaching adjusted positive cash flow from operations.
“I want to express my appreciation to our investors for their confidence in NovaBay and our future by exercising their warrants irrespective of expiration dates or strike prices,” he added.
NovaBay defines adjusted cash flow from operations as GAAP cash flow from operations less changes in operating assets and liabilities.
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. Data from a multicenter clinical study show that Avenova reduced bacterial load, the underlying cause of blepharitis, on ocular skin surface by more than 90%. 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.
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 recent warrant exercises and the possible effects they may have on the financial state of the Company and our listing on the NYSE MKT. 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.
For NovaBay Avenova purchasing information, please contact:
Toll Free: 1-800-890-0329
At the Company
Thomas J. Paulson
Chief Financial Officer