NovaBay Pharmaceuticals (NBY) Announces $100M Stock Sale Agreement with Virtu Americas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Stock Price Plunge: NovaBay Pharmaceuticals saw its stock price drop approximately 54% on Tuesday following the announcement of a $100M stock sale agreement with Virtu Americas, indicating market concerns regarding this financing method.
- Sales Agreement Details: Under the agreement signed on January 20, NovaBay can sell its common stock at a par value of $0.01 per share, with Virtu acting as the sales agent, allowing for flexible fundraising opportunities for the company.
- Commission Structure: Virtu is entitled to a commission of up to 2.0% on any sales, meaning if $100M worth of stock is sold, Virtu could earn up to $2 million, potentially impacting NovaBay's net proceeds from the sales.
- Market Reaction: While this agreement provides funding support for NovaBay, heightened market concerns about the company's future direction have led analysts to maintain a “Hold” rating, reflecting caution regarding potential M&A risks.
Analyst Views on NBY
About NBY
NovaBay Pharmaceuticals, Inc. is engaged in wound care products. The Company manufactures and sells its proprietary form of hypochlorous acid for the wound care market through its NeutroPhase and PhaseOne branded products. NeutroPhase and PhaseOne are used for cleansing and irrigation as part of surgical procedures, as well as treating wounds, burns, ulcers and other injuries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
