Warrant strike price is 13.04% premium to the company’s closing price
By Susanna Moon
Chicago, May 22 – NovaBay Pharmaceuticals, Inc. said it has entered into a securities purchase agreement for a $6,863,000 sale of its common stock and warrants in a private placement. The deal is an at-the-market placement.
Investors have agreed to purchase 10,893,648 units consisting of one share and one half-share warrant at $0.63 each, according to a company press release.
The warrants, totaling rights to 5,446,824 shares, are exercisable beginning six months after issue, entitle the holders to purchase one share of common stock at a price of $0.78 per share, and include a provision for forced conversion if the common stock trades at or above $1.00 for 10 out of 20 consecutive trading days.
This warrant will expire 18 months after the issue date.
The warrant strike price is a 13.04% premium to the company’s closing price on May 21.
China Kington Investment Co. Ltd. is the placement agent, with Maxim Group LLC as financial adviser.
Proceeds will be used for working capital and general corporate purposes, including research and development, clinical trials and selling, and general and administrative expenses, including sales and marketing expenses related to launching its Avenova product across the United States.
NovaBay Pharmaceuticals is a clinical-stage biopharmaceutical company based in Emeryville, Calif.
| Issuer: | NovaBay Pharmaceuticals
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | $6,863,000
|
| Units: | 10,893,648
|
| Price: | $0.63
|
| Warrants: | For 5,446,824 shares
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | $0.78
|
| Placement agent: | China Kington Investment Co. Ltd.
|
| Settlement date: | May 22
|
| Stock symbol: | NYSE: NBY
|
| Stock price: | $0.69 at close May 21
|
| Market capitalization: | $41.39 million
|
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