EMERYVILLE, Calif.—NovaBay Pharmaceuticals, Inc. (NYSE American: NBY), a biopharmaceutical company developing products for the eyecare market, announced it has entered into a definitive asset purchase agreement with Physician Recommended Nutriceuticals, LLC, (PRN) to sell the assets of its Avenova brand and business for $9.5 million in cash. NovaBay's leading product Avenova Lid & Lash Cleansing Spray is often recommended by eyecare professionals for blepharitis and dry eye disease, the company noted. The transaction has been approved by the company’s board of directors and is anticipated to close in the fourth quarter of 2024, according to the announcement, subject to the satisfaction of customary closing conditions, including approval from the stockholders of NovaBay.

“This transaction allows our stockholders to more fully realize the value we have created over the past 10 years with the Avenova brand. We are particularly pleased to place Avenova with PRN, a well-established eyecare company that shares our commitment to providing best-in-class products that support ocular health,” said Justin Hall, NovaBay CEO. “I believe we have found an ideal home for Avenova. We expect the brand to continue to grow and flourish under PRN’s capable leadership and their ability to promote Avenova through their existing network of more than 5,000 eyecare professionals. It’s gratifying to share that more people are using Avenova than ever before and with the support, resources and synergies that PRN can provide, we expect that number to continue to grow.”

Following a comprehensive evaluation of the transaction with assistance from independent financial and legal advisors, the company’s board of directors determined that the asset sale transaction pursuant to the agreement is in the best interests of the company and its stockholders. According to the announcement, the asset sale will require approval from NovaBay stockholders holding at least a majority of the outstanding shares of NovaBay common stock. A stockholder vote will be sought by proxy solicitation, which will include a plan of dissolution calling for the liquidation of any remaining company assets, satisfying or making reasonable provisions for any remaining obligations, and making distributions to the company’s stockholders of the available proceeds, if any.