NovaBay enters into $6M securities purchase agreement with investor David Lazar

* NovaBay Pharmaceuticals (NYSE:NBY [https://seekingalpha.com/symbol/NBY]) on Tuesday said it has entered into a $6 million securities purchase agreement with private investor David Lazar for the purchase of the company’s non-voting convertible preferred stock.
* NovaBay has received $3.85 million in the first of two closings under the agreement.
* Effective immediately, Lazar has been appointed NovaBay’s Chief Executive Officer and a director of the company.
* NBY shares up 64% in extended trading.
* Former CEO Justin Hall has assumed the newly created position of Vice President of Business Development.
* The company intends to use the proceeds of this investment transaction to pursue a strategic investment and/or acquisition.
* NovaBay also expects to declare a special cash dividend to its stockholders during the third quarter of 2025.
* With the securities purchase agreement’s first closing, NovaBay has issued new shares of non-voting convertible Series D preferred stock in exchange for Lazar’s initial investment of $3.85 million.
* The completion of the investment transaction and the second closing are contingent on obtaining stockholder approval at the 2025 annual meeting of stockholders, which is expected to be held during the fourth quarter of 2025.
* Following stockholder approval and upon meeting certain other closing conditions, NovaBay will issue new shares of non-voting convertible Series E preferred stock with the second closing investment of $2.15 million.
* Source: Press Release [https://seekingalpha.com/pr/20205912-novabay-pharmaceuticals-enters-into-6-million-securities-purchase-agreement-with-investor]

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* Financial information for NovaBay [https://seekingalpha.com/symbol/NBY/income-statement]