NovaBay raises $6m in private placement

NovaBay Pharmaceuticals (NYSE:NBY) has raised nearly $6 million after selling 1.7 million shares of common stock to OP Financial Investments Ltd., an institutional investor listed on the Hong Kong stock exchange.

The Emeryville, Calif.-based company is developing non-antibiotic products for the topical anti-infective market. Its Avenova product is designed for the removal of microorganisms and debris on and around the eyelid.

“We believe our investment in NovaBay provides OP Financial with unique insight and fresh experience in drug commercialization, as well as an opportunity to become more familiar with the U.S. pharmaceutical industry,” OP Financial CEO Zhang Gaobo said in prepared remarks.

“China Kington is proud to be the financial partner of NovaBay and this transaction aligns with our commitment to connect U.S. public companies with the financial resources in China and Hong Kong,” Eric Wu, a partner at China Kington Asset Managment Co. (which served as the placement agent for the private placement), added. “We will continue to play an active role between U.S. biopharmaceutical companies and China’s financial market.”

“We are pleased to complete this financing on favorable terms to NovaBay with an investor that shares our focus on the significant long-term potential of Avenova,” NovaBay chairman, president & CEO, Mark Sieczkarek said.

“While our previously announced $10.32 million private placement with Ch-gemstone Capital expired due to an issue with foreign investments by Chinese funds, we are pleased to offer this opportunity to OP Financial and are delighted to welcome them as a new shareholder. We thank China Kington for its continued commitment to our success.”

NBY shares were trading at $3.75 apiece in mid-afternoon activity today, up 4.8%.

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