NovaBay Pharmaceuticals Proposes Avenova Sale and Liquidation to Enhance Shareholder Value
- NovaBay Pharmaceuticals proposes selling its Avenova® eyecare business for $11.5 million to enhance shareholder value.
- The Board unanimously supports the sale, aiming for clear valuation and liquidity for shareholders.
- A second proposal involves voluntary liquidation, marking a strategic shift in NovaBay's operations to protect shareholder interests.
NovaBay Pharmaceuticals Advances Strategic Shift with Key Proxy Proposals
NovaBay Pharmaceuticals, Inc. is currently navigating a critical juncture in its operations as it seeks to enhance shareholder value through two significant proxy proposals. The company, renowned for its innovative eyecare product, Avenova®, has garnered a favorable recommendation from Institutional Shareholder Services (ISS), the largest institutional advisory firm. The first proposal advocates for the sale of NovaBay's eyecare business, specifically the Avenova® product line, to PRN Physician Recommended Nutriceuticals, LLC for $11.5 million in cash. This move is seen as a pivotal strategy to generate immediate liquidity for shareholders while allowing the company to streamline its focus.
The Board of Directors at NovaBay unanimously supports the proposed sale, emphasizing that it represents the best opportunity to maximize shareholder value. By divesting the Avenova® product line, NovaBay aims to provide its stockholders with a clear and certain valuation of their investments, a crucial factor in today's volatile market environment. ISS has echoed these sentiments, highlighting the potential risks and losses associated with the non-approval of these measures. As the company prepares for a virtual Special Meeting of Stockholders scheduled for November 22, 2024, stockholders are encouraged to participate in the decision-making process, with voting open until the meeting date.
In addition to the Avenova® sale proposal, the second proposal under consideration involves the voluntary liquidation and dissolution of the company. This decision represents a significant pivot for NovaBay, indicating a strategic retreat from its current operational model. The dual proposals reflect an overarching commitment to return value to shareholders during a period of transition. As NovaBay embarks on this restructuring path, the leadership underscores the importance of acting decisively to ensure the company's long-term viability while protecting shareholder interests.
In related developments, the Definitive Proxy Statement detailing these proposals was filed on October 16, 2024, with subsequent updates provided on November 6 and November 12, 2024. Stockholders as of October 15, 2024, are eligible to vote and are encouraged to reach out to NovaBay’s proxy solicitation firm, Sodali & Co., for assistance. The outcome of the upcoming vote will play a crucial role in shaping the future of NovaBay Pharmaceuticals and its commitment to delivering value amid ongoing industry challenges.
