NovaBay Pharmaceuticals Sells Avenova Business for $11.5 Million Amid Strategic Restructuring
- NovaBay Pharmaceuticals sold its Avenova eyecare business to PRN for $11.5 million to optimize its asset portfolio.
- The sale was approved by stockholders, reflecting support for the company's strategic shift and potential dissolution plans.
- CEO Justin Hall views the sale as an opportunity for Avenova to grow independently while maximizing shareholder value.
NovaBay Pharmaceuticals Completes Sale of Avenova Eyecare Business
NovaBay Pharmaceuticals, Inc. has finalized the sale of its Avenova eyecare business and associated assets to PRN Physician Recommended Nutriceuticals, LLC for $11.5 million. This strategic move is part of a larger plan by the company to optimize its asset portfolio and streamline operations. The sale, executed under an Asset Purchase Agreement dated September 19, 2024, represents a significant milestone for NovaBay, as it includes nearly all of the company’s tangible assets. NovaBay’s stockholders approved the transaction at a Special Meeting held on January 16, 2025, indicating strong support for the divestiture as the company shifts its focus.
Despite the approval of the asset sale, the Special Meeting witnessed an adjournment until January 30, 2025, primarily to gather additional votes on Proposal Two, which seeks the stockholders' approval for the company’s liquidation and dissolution. Currently, approximately 49% of the shares have voted in favor of the dissolution proposal, falling just shy of the 50% threshold needed for approval. However, there is notable enthusiasm among shareholders, with around 86.7% of the votes cast supporting the proposal thus far. This strong backing reflects a collective sentiment towards streamlining NovaBay’s operations and maximizing shareholder value.
Justin Hall, CEO of NovaBay, expresses optimism regarding the completed sale, viewing it as an opportunity to monetize a valuable asset while allowing the Avenova brand to flourish independently. He underscores the transition as a pivotal change for the company, one that could facilitate the growth of Avenova in a more focused environment. Following the asset sale, NovaBay’s management believes that moving forward with the dissolution aligns with the best interests of its shareholders, with the Board of Directors retaining the discretion to liquidate the company in a manner that maximizes overall value.
In addition to the asset sale, NovaBay's future hinges on the outcomes of the Special Meeting and shareholder votes. The company’s leadership remains committed to navigating this transition effectively, ensuring that stakeholders are informed and engaged throughout the process. As the dissolution progresses, the focus will likely remain on optimizing the remaining assets and providing clarity to shareholders about the next steps in this transformative phase for NovaBay Pharmaceuticals.
This significant shift highlights the evolving landscape of the eyecare industry, where strategic mergers, acquisitions, and divestitures are increasingly common as companies seek to adapt to market demands and enhance operational efficiencies. As NovaBay embarks on this new chapter, the implications of the sale and potential dissolution will be closely monitored by industry analysts and stakeholders alike.
