BUSINESS: Financial NovaBay Pharmaceuticals Announces Agreement for Nearly $12 Million in Two-Tranche Private Placement By Staff Friday, April 8, 2016 12:23 AM EMERYVILLE, Calif.—NovaBay Pharmaceuticals, Inc. (NYSE MKT: NBY) a biopharmaceutical company focusing on commercializing its Avenova Lid and Lash Cleanser for the domestic eyecare market, announces that it has entered into a securities purchase agreement for the sale of its common stock and warrants in a private placement to accredited investors for $11.791 million.The financing structure is a commitment by investors to participate in two tranches or portions. The first tranche closing is scheduled to occur on May 5, 2016 with proceeds totaling $7,791,000 and a second tranche closing is scheduled to occur on July 31, 2016 for additional proceeds of $4 million.In the combined tranche closings, investors have agreed to purchase up to a total of 6,173,299 units with each unit consisting of one share of NovaBay common stock and a warrant to purchase an additional one-half share of common stock. The cost per unit is $1.91. The warrants, totaling rights to 3,086,651 shares, have a four-year term from the date of issuance, an exercise price of $1.91 per share, and are callable by NovaBay if the closing price of the common stock as reported by the NYSE MKT is $4.00 per share or greater for five consecutive trading days. If all warrants related to this financing are exercised, gross proceeds from those warrants will total approximately $5.9 million, bringing the cumulative amount raised in this financing to nearly $18 million.Investors who have agreed to participate in the private placement include current stockholders Jian Ping Fu and Pioneer Pharma (Singapore) Pte. Ltd. Pioneer Pharma (Singapore) Pte. Ltd., together with its affiliates. These entities constitute NovaBay’s largest shareholder. China Kington Asset Management Co. Ltd. is acting as the sole placement agent for the sales to Fu, Pioneer Pharma (Singapore) Pte. Ltd. and three other investors. NovaBay chairman and interim president and CEO Mark M. Sieczkarek, as well as other accredited investors, have also agreed to participate in the private placement.The financing is contingent on stockholder approval and the satisfaction of other customary conditions. The results of the vote by stockholders will be announced at the company’s annual meeting of stockholders to be held May 3, 2016.