EMERYVILLE -
NovaBay expects to close the transaction before the end of the first quarter of 2024 and provide certain transitional services for the next 90 days.
'This sale will reduce our quarterly operating expenses and provide us with much-needed cash during this challenging capital market environment. It also streamlines our business by placing us in a better position to pursue new strategic opportunities that have greater potential for growth,' said
'We expanded our product lineup in the direct-to-consumer market during the height of COVID-19 with the expectation that growth in eCommerce sales would continue post-pandemic,' he added. 'Unfortunately, our projections for DERMAdoctor sales and profitability were not realized. This divestiture aligns with our strategy of executing on more promising transactions that involve our core Avenova business such as our recently announced co-promotion partnership with
On
Included within the upcoming Company Annual Report on Form 10-K for the year ended
Also, included within the upcoming Company Annual Report on Form 10-K for the year ended
NovaBay's cash as of
About Avenova
NovaBay's leading product Avenova Antimicrobial Lid & Lash Solution is often prescribed by eyecare professionals for blepharitis and dry-eye disease and is available directly to consumers through online distribution channels such as Amazon.com. It is clinically proven to kill a broad spectrum of bacteria to help relieve the symptoms of bacterial dry eye, yet is non-irritating and completely safe for regular use. NovaBay offers a full portfolio of scientifically developed products for each step of the standard dry eye treatment regimen, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops for instant relief, Avenova Warm Eye Compress to soothe the eyes and the i-Chek by Avenova to monitor physical eyelid health. The Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in
About
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release may be forward looking within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations, assumptions, estimates, projections and beliefs and include, but are not limited to, statements regarding our potential sale of DERMAdoctor, current revenue sources, and expected future revenue, as well as generally the Company's expected future financial results. These statements involve risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to the size of the potential market for our products, the possibility that the available market for the Company's products will not be as large as expected, the Company's products will not be able to penetrate one or more targeted markets, and the possibility that the Company's revenues will not be sufficient to meet the Company's cash needs, the potential inability of the Company to successfully complete its financing initiatives (including any related stockholder or regulatory approvals) or continue operating as a going concern, the Company's potential inability to close the sale of DERMAdoctor within our expected timeframe, if at all, and the Company's inability to maintain the listing of its common stock on the NYSE American. Other risks relating to NovaBay's business, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay's latest Annual and Quarterly Reports on Form 10-K and Form 10-Q. The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.
Contact:
Tel: 510-899-8800
Email: jhall@novabay.com
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