NovaBay Pharmaceuticals, Inc. (NYSE American:NBY), a pharmaceutical company specializing in developing products for eye care, announced the extension of the contract for its Chief Executive Officer and General Counsel, Justin M. Hall.
The new amendment to Mr. Hall's executive employment agreement, disclosed in a recent SEC filing, extends his tenure through December 31, 2025. The announcement comes as the company faces challenging market conditions, with InvestingPro data showing an 87% decline in stock price over the past year, despite recent positive momentum with strong returns in the past three months.
The amendment, referred to as the Third Amendment, was executed on January 15, 2025, and follows two previous amendments to the original employment agreement dated January 31, 2020. These amendments were effective as of December 31, 2021, and December 31, 2023, respectively. The Third Amendment ensures the continuation of Hall's leadership unless terminated earlier based on the terms of the Employment Agreement.
NovaBay's decision to continue with Mr. Hall's services could be interpreted as a vote of confidence in his leadership and strategic direction. According to InvestingPro data, the company maintains a moderate debt level with a current ratio of 1.15 and generated revenue of $13.84 million in the last twelve months, though analysts anticipate sales decline in the current year.
In other recent news, NovaBay Pharmaceuticals has been making significant moves, including the planned sale of its Avenova business to PRN Physician Recommended Nutriceuticals, LLC for $11.5 million. This sale is part of two major proposals up for vote at an upcoming Special Meeting of Stockholders, the other being the potential liquidation and dissolution of the company. Both proposals have been unanimously recommended by NovaBay's Board of Directors and endorsed by advisory firm Institutional Shareholder Services (ISS).
NovaBay has also agreed to a revised offer from PRN, which includes a secured promissory note of up to $1 million expected to be repaid at the transaction's closing. This followed a reassessment of a proposal from Refresh Acquisitions BidCo LLC.
In addition to these developments, NovaBay reported a positive growth in its eyecare business, with sales reaching $4.8 million in the first half of 2024 and a projected target of $10 million by year's end. The company also reported an 8% rise in total net sales to $2.4 million and a significant increase in gross margin on net product revenue to 66%.
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