NovaBay Pharmaceuticals Plan of Compliance Accepted by the NYSE American
NovaBay Pharmaceuticals (NBY) announced that the NYSE American has accepted its compliance plan, allowing the company to remain listed while working towards meeting NYSE listing standards. Following the divestiture of an unprofitable segment, NovaBay is now focusing on its core eyecare business, particularly its Avenova®-branded products. The NYSE American has reviewed the plan and acknowledged NovaBay's potential to regain compliance by October 18, 2025, with quarterly reviews until then. Failure to meet these standards could result in delisting proceedings. The company had previously been notified on April 18 and May 28, 2024, about non-compliance due to inadequate stockholders' equity, but this does not affect its business operations or SEC reporting requirements.
- NYSE American accepted NovaBay's compliance plan, allowing continued listing.
- Company has divested an unprofitable business segment, refocusing on core eyecare products.
- Potential for growth in the U.S. eyecare market with established Avenova®-branded products.
- Effective digital marketing programs and a loyal customer base enhance business prospects.
- Quarterly monitoring by NYSE American provides structured oversight towards compliance.
- Company is currently not in compliance with NYSE's listing standards for stockholders' equity.
- Risk of delisting if compliance is not achieved by October 18, 2025.
- Previous notifications of non-compliance might signal ongoing financial challenges.
- Potential investor uncertainty due to compliance monitoring and delisting risk.
Insights
The acceptance of NovaBay Pharmaceuticals' compliance plan by the NYSE American is a noteworthy development for stakeholders. Divesting an unprofitable business segment has allowed the company to concentrate on its core eyecare business, a move that strategically aligns with enhancing profitability and market focus. The short-term implication is the stabilizing of NovaBay’s financial health, which addresses immediate concerns of stockholder equity. However, the quarterly monitoring indicates that NovaBay is still under scrutiny and any deviation from the plan could lead to negative outcomes, such as delisting proceedings.
For retail investors, it's essential to consider both short-term risks and long-term potential. The company's focus on high-quality Avenova®-branded products and effective digital marketing suggests a growth strategy that may bear fruit if executed correctly. However, the underlying risk remains until compliance is fully restored by October 2025. Investors should also watch for quarterly updates to gauge the company’s progress.
NovaBay’s renewed focus on the large U.S. eyecare market is a strategic move that positions the company in a niche but growing sector. The eyecare market is anticipated to expand due to an aging population and increased screen time, which causes more people to seek eyecare solutions. NovaBay’s established brand and loyal customer base could give it a competitive edge. However, competition is fierce and maintaining market share will require continuous innovation and effective marketing.
Retail investors should understand that market positioning and brand loyalty are advantageous but not guarantees of success. The company's ability to leverage its digital marketing programs effectively will be important in driving sales and maintaining customer engagement. The growth potential is significant but comes with inherent risks associated with market competition and execution.
“I’m pleased to report on our forward momentum. By divesting an unprofitable business segment earlier this year, we’re now able to focus solely on our core competency in eyecare,” said Justin Hall, CEO of NovaBay. “Unshackled by past burdens, we are positioned for growth in the large
The NYSE American has reviewed NovaBay’s compliance plan and information submitted on May 8, 2024 and determined that the Company made a reasonable demonstration of its ability to make substantial progress toward regaining compliance by October 18, 2025. During this time, the Company will be subject to quarterly monitoring for compliance with the plan. If the Company does not regain compliance with NYSE American’s listing standards by October 18, 2025, or if the Company does not make sufficient progress consistent with its plan, then the NYSE American may initiate delisting proceedings at that time.
As previously disclosed, the NYSE American notified the Company on April 18, 2024 and May 28, 2024 that it was not in compliance with the continued listing standards of the NYSE American Company Guide. Specifically, the notifications indicated that the Company was not in compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the Company Guide, requiring a listed company to have a certain amount of stockholders' equity. The Company’s receipt of such notification from NYSE American does not affect the Company’s business operations or its reporting requirements with the
About NovaBay Pharmaceuticals, Inc.:
NovaBay’s leading product Avenova® Antimicrobial Lid & Lash Solution is often prescribed by eyecare professionals for blepharitis and dry-eye disease and is available directly to consumers through online distribution channels such as Amazon.com. It is clinically proven to kill a broad spectrum of bacteria to help relieve the symptoms of bacterial dry eye, yet is non-irritating and completely safe for regular use. NovaBay offers a full portfolio of scientifically developed products for each step of the standard dry eye treatment regimen, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops for instant relief, Avenova Warm Eye Compress to soothe the eyes and the i-Chek by Avenova to monitor physical eyelid health. The Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in
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 and prospects and the Company's ability to regain compliance with the continued listing requirements of NYSE American. These statements involve 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 with the SEC, especially under the heading "Risk Factors". The forward-looking statements in this press 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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Avenova Purchasing Information
For NovaBay Avenova purchasing information:
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240607334849/en/
NovaBay
Justin Hall
Chief Executive Officer and General Counsel
510-899-8800
jhall@novabay.com
Investors
LHA Investor Relations
Jody Cain
310-691-7100
jcain@lhai.com
Source: NovaBay Pharmaceuticals, Inc.
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