NovaBay Pharmaceuticals Receives $7 Million from Early Warrant Exercise
03 October 2016 - 9:50PM
Business Wire
Key step in regaining NYSE shareholder
equity listing requirement
Reiterates goal of reaching adjusted
positive cash flow breakeven
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.
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 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161003005413/en/
NovaBay ContactsFor NovaBay
Avenova purchasing information, please contact:Email usCall us:
1-800-890-0329www.Avenova.comorFrom the
CompanyThomas J. Paulson, 510-899-8809Chief Financial
OfficerContact TomorInvestor
Contact:LHAJody Cain, 310-691-7100Jcain@lhai.com
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