NovaBay to sell Avenova brand for $9.5M in cash

NovaBay announced it has entered into a definitive asset purchase agreement with PRN Physician Recommended Nutriceuticals to sell the assets of its Avenova brand and business for $9.5M in cash. The transaction has been approved by the company’s board of directors and is anticipated to close in the fourth quarter of 2024, subject to the satisfaction of customary closing conditions, including approval from the stockholders of NovaBay. Following an evaluation of the transaction with assistance from independent financial and legal advisors, the company’s board of directors determined that the asset sale transaction pursuant to the agreement is in the best interests of the company and its stockholders. The asset sale will require approval from NovaBay stockholders holding at least a majority of the outstanding shares of NovaBay common stock. A stockholder vote will be sought by proxy solicitation, which will include a plan of dissolution calling for the liquidation of any remaining company assets, satisfying or making reasonable provisions for any remaining obligations, and making distributions to the company’s stockholders of the available proceeds, if any.