NovaBay Pharmaceuticals CEO Issues Letter to Stockholders
NovaBay Pharmaceuticals (NBY) has transitioned from a single-product company to a three-brand organization in eyecare, skincare, and wound care. CEO Justin Hall highlighted strong sales growth for Avenova with over 600 units sold daily, an 18% year-over-year increase. The company plans a reverse stock split to enhance stock market performance and has engaged with new partners to expand into European and Chinese markets. Anticipated revenue boosts from seasonal orders and new product launches were noted, driving confidence in future growth.
- Over 600 units of Avenova sold daily, representing an 18% year-over-year increase.
- Expansion into eyelash extension market projected to grow due to consumer demand estimated at $2.4 billion by 2031.
- New partnerships to drive DERMAdoctor's expansion in China and Europe.
- Seasonal order from Costco expected to boost third and fourth quarter revenue.
- Need for additional capital and potential reverse stock split may concern investors.
- Requirement for stockholder approval due to financing transactions may create investor uncertainty.
To My Fellow Stockholders:
Over the past year, we have successfully transformed NovaBay from a single product company into a larger organization with three brands in three distinct market segments. We are a stronger company with established brands in the large and growing eyecare, skincare and wound care markets. Our Avenova®, DERMAdoctor® and PhaseOne® products all have loyal customer bases, resulting in recurring revenue and a solid foundation for growth as we execute an aggressive commercial strategy. We differentiate our products from our competitors by being scientifically developed and clinically proven. Our high-quality products are all manufactured in
As our stockholders know, on
We currently anticipate holding a special meeting of stockholders on
Despite the current need for financing, there are many reasons to be optimistic about our future. More people are using Avenova today than ever before, with more than 600 units selling on Amazon each day, representing an
We are capitalizing on the trend for beauty products to be increasingly purchased online by broadening availability of select DERMAdoctor products through two popular
Expanding marketing activities to certain overseas geographies is also a key priority to driving sales growth. To that end, we recently engaged a new partner in
Lastly, we launched seven new products since the beginning of 2022. This includes both new Avenova and DERMAdoctor products, keeping us highly relevant in industries that are characterized by rapid change. All our new offerings reinforce our corporate positioning of formulating and selling proprietary OTC products that are effective, scientifically developed, clinically proven and gentle, while addressing common yet underserved conditions. Importantly, all of our new product creations and launch activities are efficiently managed under a low-cost model.
Looking forward, we still anticipate a strong end to the year. A large seasonal order from Costco for DERMAdoctor’s top-selling product, Kakadu C, will increase revenue in the third and fourth quarters. We also generally expect a spike in DERMAdoctor sales during the fall, which is the seasonally strongest period for skincare products. These developments underscore our confidence for continued growth.
As we gain traction from our initiatives and favorable industry trends, we expect continued growth through 2022 and into 2023. On behalf of my NovaBay colleagues and our Board of Directors, I appreciate your continued support of our path to profitability.
Sincerely,
Chief Executive Officer and General Counsel
About
NovaBay Pharmaceuticals 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,” “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 our business strategies, ability to complete certain financing transactions, current and future product offerings, marketing efforts, and any future revenue that may result from selling such products, as well as generally the Company’s expected future financial results (and ability to continue as a going concern) and the impact of a reverse stock split. 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. 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 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
Additional Information
As referenced above, certain stockholder matters will need to be voted upon (the “Stockholder Matters”) and the Company filed a preliminary proxy statement with the Commission on
Participants in the Solicitation
The Company and its directors and executive officers may be deemed participants in the solicitation of proxies from the Company’s stockholders with respect to the Stockholder Matters. A list of the names of those directors and executive officers and a description of their interests in the Company is contained in the Company’s filings with the Commission, including in the Company’s Annual Report on Form 10-K for the year ended
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Avenova Purchasing Information
For NovaBay Avenova purchasing information:
Please call 800-890-0329 or email sales@avenova.com
Avenova.com
DERMAdoctor Purchasing Information
For DERMAdoctor purchasing information:
Please call 877-337-6237 or email service@dermadoctor.com
DERMAdoctor.com
NovaBay Contact
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investor Contact
LHA Investor Relations
310-691-7100
jcain@lhai.com
Source:
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