Deal sells 6,173,299 shares, four-year warrants for 3,086,651 shares
By Devika Patel
Knoxville, Tenn., April 5 – NovaBay Pharmaceuticals, Inc. arranged an $11.79 million private placement of stock on April 4, according to an 8-K filed Wednesday with the Securities and Exchange Commission. China Kington Asset Management Co. Ltd. is the agent for the deal.
The company will sell 6,173,299 common shares at $1.91 per share. The price per share is an 8.61% discount to the April 1 closing share price of $1.91.
Investors also will receive warrants for 3,086,651 shares, which are each exercisable at $1.91 for four years. The strike price is also an 8.61% discount to the April 1 closing share price of $2.09.
Pioneer Pharma (Singapore) Pte. Ltd. will buy 2,617,802 shares for $5 million; Jian Ping Fu will buy 1,937,173 shares for $3.7 million; Mark M. Sieczkarek will buy 523,560 shares for $1 million; Ping Huang will buy 523,560 shares for $1 million; Hai Dong Pang will buy 209,424 shares for $400,000; Yin Ping Wang will buy 104,712 shares for $200,000; Blake F. Andros will buy 100,000 shares for $191,000; the Children’s Brain Disease Foundation will buy 52,356 shares for $100,000; Dean Rider will buy 52,356 shares for $100,000; and Andy R. Geckler will buy 52,356 shares for $100,000.
Settlement is expected in two tranches, with the first $7,791,000 tranche settling on May 5 and the second closing for $4 million on July 31.
NovaBay Pharmaceuticals is a clinical-stage biopharmaceutical company based in Emeryville, Calif.
| Issuer: | NovaBay Pharmaceuticals, Inc.
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| Issue: | Common stock
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| Amount: | $11,791,000
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| Shares: | 6,173,299
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| Price: | $1.91
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| Warrants: | For 3,086,651 shares
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| Warrant expiration: | Four years
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| Warrant strike price: | $1.91
|
| Agents: | China Kington Asset Management Co. Ltd.
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| Investors: | Pioneer Pharma (Singapore) Pte. Ltd. (for $5 million); Jian Ping Fu (for $3.7 million); Mark M. Sieczkarek (for $1 million); Ping Huang (for $1 million); Hai Dong Pang (for $400,000); Yin Ping Wang (for $200,000); Blake F. Andros (for $191,000); the Children’s Brain Disease Foundation (for $100,000); Dean Rider (for $100,000); and Andy R. Geckler (for $100,000)
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| Pricing date: | April 4
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| Settlement date: | May 5 (for $7,791,000), July 31 (for $4 million)
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| Stock symbol: | NYSE: NBY
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| Stock price: | $2.09 at close April 1
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| Market capitalization: | $10.01 million
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