NovaBay Pharmaceuticals Announces Pricing of $3.5 Million Underwritten Public Offering
NovaBay Pharmaceuticals (NYSE American: NBY) has announced the pricing of a $3.5 million underwritten public offering. The offering includes 3,200,380 shares of common stock (or pre-funded warrants) and three series of warrants (F-1, F-2, and F-3) at a combined public offering price of $1.10 per share. Each warrant series allows the purchase of up to 3,200,380 additional shares. Ladenburg Thalmann & Co. Inc. is acting as the sole bookrunning manager. The company plans to use the proceeds to redeem outstanding convertible debentures and for working capital. The offering is expected to close around July 29, 2024, subject to customary conditions.
NovaBay Pharmaceuticals (NYSE American: NBY) ha annunciato il prezzo di un . L'offerta comprende 3.200.380 azioni ordinarie (o warrant prefinanziati) e tre serie di warrant (F-1, F-2 e F-3) a un prezzo pubblico complessivo di 1,10 dollari per azione. Ogni serie di warrant consente l'acquisto di fino a 3.200.380 azioni aggiuntive. Ladenburg Thalmann & Co. Inc. funge da unico gestore della registrazione. L'azienda prevede di utilizzare i proventi per riscattare i debitori convertibili in circolazione e per il capitale circolante. Si prevede che l'offerta si concluda intorno al 29 luglio 2024, soggetta a condizioni consuete.
NovaBay Pharmaceuticals (NYSE American: NBY) ha anunciado el precio de una oferta pública suscrita de 3.5 millones de dólares. La oferta incluye 3,200,380 acciones ordinarias (o garantías prefinanciadas) y tres series de garantías (F-1, F-2 y F-3) a un precio público combinado de 1.10 dólares por acción. Cada serie de garantías permite la compra de hasta 3,200,380 acciones adicionales. Ladenburg Thalmann & Co. Inc. actúa como el único gerente de la emisión. La compañía planea usar los ingresos para redimir los bonos convertibles en circulación y para capital operativo. Se espera que la oferta se cierre alrededor de 29 de julio de 2024, sujeta a condiciones habituales.
노바베이 제약(NYSE American: NBY)은 350만 달러의 인수된 공개 제공 가격을 발표했습니다. 이 제공은 3,200,380주의 보통주(또는 미리 자금 지원된 워런트)와 세 가지 워런트 시리즈(F-1, F-2 및 F-3)를 포함하며, 총 공개 제공 가격은 주당 1.10달러입니다. 각 워런트 시리즈는 최대 3,200,380주의 추가 매수를 허용합니다. Ladenburg Thalmann & Co. Inc.가 단독 북런ニング 매니저로 활동하고 있습니다. 회사는 수익금을 미결제 전환 사채를 상환하고 운영 자금으로 사용할 계획입니다. 이 제공은 2024년 7월 29일 경에 마감될 것으로 예상되며, 일반적인 조건에 따릅니다.
NovaBay Pharmaceuticals (NYSE American: NBY) a annoncé le prix d'une offre publique souscrite de 3,5 millions de dollars. L'offre comprend 3 200 380 actions ordinaires (ou des bons préfinancés) et trois séries d'options (F-1, F-2 et F-3) à un prix public combiné de 1,10 dollar par action. Chaque série de bons permet l'achat de jusqu'à 3 200 380 actions supplémentaires. Ladenburg Thalmann & Co. Inc. agit en tant que seul gestionnaire des livres. L'entreprise prévoit d'utiliser les produits de l'offre pour racheter des obligations convertibles en circulation et pour le fonds de roulement. L'offre devrait se clôturer autour du 29 juillet 2024, sous réserve des conditions habituelles.
NovaBay Pharmaceuticals (NYSE American: NBY) hat den Preis für ein aufgenommenes öffentliches Angebot von 3,5 Millionen Dollar bekannt gegeben. Das Angebot umfasst 3.200.380 Stammaktien (oder vorfinanzierte Warrants) und drei Serien von Warrants (F-1, F-2 und F-3) zu einem kombinierten öffentlichen Angebotspreis von 1,10 Dollar pro Aktie. Jede Warranthserie erlaubt den Kauf von bis zu 3.200.380 zusätzlichen Aktien. Ladenburg Thalmann & Co. Inc. fungiert als alleiniger Bookrunning-Manager. Das Unternehmen plant, die Einnahmen zu verwenden, um ausgegebene wandelbare Schuldverschreibungen einzulösen und für Betriebskapital. Das Angebot wird voraussichtlich um den 29. Juli 2024 schließen, vorbehaltlich üblicher Bedingungen.
- Raised $3.5 million in capital through public offering
- Potential for additional $0.5 million if underwriter exercises over-allotment option
- Funds to be used for debt redemption and working capital
- Potential dilution of existing shareholders due to new share issuance
- Complex warrant structure may confuse investors
- Short-term expiration of Series F-2 and F-3 warrants (6 months and 1 year respectively)
NovaBay Pharmaceuticals' $3.5 million public offering is a significant move that warrants attention. The company is issuing a complex mix of securities, including common stock, pre-funded warrants and three series of warrants (F-1, F-2 and F-3). This structure suggests a strategic approach to raising capital while potentially minimizing immediate dilution.
The pricing at $1.10 per unit and the inclusion of multiple warrant series with varying expiration dates (5 years, 6 months and 1 year) indicate a careful balancing act. The company is offering investors different timeframes for potential upside, which could attract a diverse investor base. However, the potential for future dilution is substantial if all warrants are exercised.
A critical aspect is the one-time reset feature on the warrant exercise prices. This provision, allowing for a potential downward adjustment after 60 days, could be seen as investor-friendly but also suggests uncertainty about the stock's future performance.
The intended use of proceeds to redeem outstanding convertible debentures is noteworthy. This move could improve NovaBay's balance sheet by reducing debt, but it also means that a significant portion of the raised capital won't be directly invested in growth initiatives.
Overall, while this offering provides much-needed capital, it comes at the cost of potential significant dilution and complex warrant structures that could impact future stock performance. Investors should closely monitor how effectively NovaBay utilizes these funds to drive growth and improve its financial position.
NovaBay's public offering reflects broader trends in the biotech and pharmaceutical sectors, where smaller companies often struggle to secure funding through traditional means. The complex structure of this offering – combining common stock with multiple warrant series – is increasingly common among small-cap biotech firms seeking to attract investors in a challenging market environment.
The $3.5 million raise, while significant for NovaBay, is relatively small in the context of drug development costs. This suggests that the company may need to return to the capital markets in the future, which could lead to further dilution for existing shareholders.
The inclusion of a 45-day over-allotment option for the underwriter is standard practice but could lead to additional dilution if exercised. This flexibility allows the company to potentially raise up to
The warrant reset feature is particularly intriguing from a market perspective. It provides a form of downside protection for warrant holders but could also be seen as a lack of confidence in maintaining the current stock price. This feature might attract more risk-averse investors but could also signal caution to the broader market.
Given the current market conditions and investor sentiment towards small-cap biotech stocks, NovaBay's ability to secure this funding, albeit with complex terms, demonstrates that there's still appetite for investment in this sector. However, the terms of this offering suggest that investors are demanding more favorable conditions and additional upside potential to compensate for the inherent risks in early-stage pharmaceutical companies.
In addition, the Company has granted the underwriter for the offering a 45-day option to purchase up to 477,272 additional shares of common stock and/or up to 477,272 Series F-1 warrants to purchase up to 477,272 shares of common stock, up to 477,272 Series F-2 warrants to purchase up to 477,272 shares of common stock and up to 477,272 Series F-3 warrants to purchase up to 477,272 shares of common stock or any combination thereof, as determined by the underwriter, at the public offering price, less underwriting discounts and commissions, in each case solely to cover over-allotments, if any.
Ladenburg Thalmann & Co. Inc. is acting as sole bookrunning manager for the offering.
Each share of common stock (and each pre-funded warrant in lieu thereof) is being sold together with one Series F-1 warrant to purchase one share of common stock, one Series F-2 warrant to purchase one share of common stock, and one Series F-3 warrant to purchase one share of common stock. The Series F-1 warrants have an exercise price of
The aggregate gross proceeds from the offering will be approximately
The offering is expected to close on or about July 29, 2024, subject to the satisfaction of customary closing conditions.
The offering is being conducted pursuant to NovaBay’s registration statement on Form S-1 (File No. 333-280423) previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”) on July 25, 2024 (the “registration statement”). The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus describing the terms of the offering has been filed with the SEC and is available on the SEC’s website located at http://www.sec.gov and a final prospectus relating to the offering will be filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, by contacting Ladenburg Thalmann & Co. Inc., Prospectus Department, 640 5th Avenue, 4th Floor,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About NovaBay Pharmaceuticals, Inc.
NovaBay’s leading product Avenova® Antimicrobial Lid & Lash Solution is often recommended by eyecare professionals for blepharitis and dry eye disease. Manufactured in the
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements that are based upon management's current expectations, assumptions, estimates, projections and beliefs. The use of words such as, but not limited to, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “preliminary,” “should,” “target,” “will,” or “would” and similar words or expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the timing and completion of the offering, and the intended use of net proceeds therefrom. These statements are based on information available to the Company as of the date of this press release and are subject to numerous important factors that 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. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Other risks relating to the Company’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 the Company’s latest Form 10-Q/K filings and registration statement, as may be amended from time to time, filing with the SEC, especially under the heading “Risk Factors.” The forward-looking statements in this release speak only as of this date, and the Company disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.
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NovaBay
Justin Hall
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investor Relations
LHA Investor Relations
Jody Cain
310-691-7100
jcain@lhai.com
Source: NovaBay Pharmaceuticals, Inc.
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