NovaBay Pharmaceuticals (NYSE:NBY) announced today that it entered into a securities purchase agreement, with proceeds of approximately $15 million.
Emeryville, California-based NovaBay’s agreement with certain institutional investors occurred in connection with a private placement of 15,000 shares of a newly created Series B non-voting convertible preferred stock.
The Series B preferred stock comes in at a price of $1,000 per share with warrants exercisable to purchase up to an aggregate of 37.5 million shares of common stock at an exercise price of 53¢ per share, according to a news release. The company expects to close the private placement on or about Nov. 2, subject to the satisfaction of customary closing conditions.
In September, NovaBay entered into a definitive agreement to acquire Dermadoctor, contingent upon NovaBay completing a financing to raise capital sufficient to fund the purchase price. The company said it intends to use the net proceeds from the offering to partially fund the acquisition of Dermadoctor and for working capital purposes.
“This financing allows us to close on the Dermadoctor acquisition and fully fund our path to profitability. With this acquisition, we are doubling the size of our Company and expanding into the lucrative skincare market,” NovaBay CEO Justin Hall said in the release. “In addition to acquiring Dermadoctor existing line of products, we will be aggressively launching new products and brands in the coming year.”
NovaBay develops the Avenova antimicrobial lid and lash spray, the CelleRx clinical reset and the NeutroPhase skin and wound cleanser for wound healing, all formulated with its patented, pure, stable, pharmaceutical-grade hypochlorous acid.