NovaBay Pharmaceuticals (NBY) stock rocketed higher on Wednesday after the biopharmaceutical company announced a $6 million securities purchase agreement with private investor David Lazar. This agreement is for the company’s non-voting convertible preferred stock and is split into two closings. The company has already received the first $3.85 million from the deal.
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In addition to this deal, Lazar has been named the new CEO of NovaBay Pharmaceuticals. This saw him replace Justin Hall, who has taken on the newly created role of Vice President of Business Development. Lazar taking over the company will keep it from liquidation, a process it was prepared to start after the sale of its Avenova brand and related assets to Physician Recommended Nutriceuticals in January.
The new NovaBay Pharmaceuticals CEO said, “In making this significant investment in NovaBay, I look forward to maintaining NovaBay’s public listing and actively exploring strategic opportunities to drive value for our stockholders.”
NovaBay Pharmaceuticals Stock Movement Today
NovaBay Pharmaceuticals stock was up 59.8% in pre-market trading on Wednesday, following a 3.68% dip yesterday. The shares are roughly flat year-to-date and have rallied 10.29% over the past 12 months. Today’s movement came with heavy trading, as some 22 million shares changed hands, compared to a three-month daily average of about 48,000 units.
Is NovaBay Pharmaceuticals Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of NovaBay Pharmaceuticals is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates NBY stock a Neutral (49) with a 50-cent price target. It cites “poor financial performance, characterized by declining revenues and negative profit margins” as reasons for this stance.
