NovaBay Pharmaceuticals Inc. (NYSEAMERICAN: NBY) shares jumped 48.31% in after-hours trading on Tuesday, reaching $1.32 after closing the regular session at $0.89. The biotech company’s board declared a one-time special cash dividend of $0.80 per share.
Check out the current price of NBY stock here.
Special Transaction Committee Approves Historic Dividend
The Special Transaction Committee and Board of Directors approved the special dividend payable September 29, to stockholders of record as of September 15. The $0.80 per share payout represents approximately 90% of NBY’s closing stock price, triggering NYSE American’s due bill procedures.
"This special dividend shows our focus on delivering value straight to our stockholders," said NovaBay CEO David Lazar in the company's SEC filing. "I'm excited about what's ahead as we look into some interesting strategic options."
Major Investment Transaction Enables Dividend
The dividend follows the clinical-stage biopharmaceutical’s $6 million investment agreement with David E. Lazar, who recently became CEO. Lazar completed the first closing on August 19, purchasing 481,250 shares of Series D convertible preferred stock at $8.00 per share for $3.85 million gross proceeds.
The company segregated cash specifically for this dividend following the sale of its Avenova eyecare products to PRN Physician Recommended Nutriceuticals in January. A second closing for $2.15 million in Series E preferred stock is expected by fourth quarter.
Technical Trading Considerations
Due to the dividend’s size exceeding 25% of the stock price, NYSE American implemented “due bills” trading from the September 15 record date through the September 29 payment date. Shareholders selling during this period transfer dividend rights to buyers.
NBY trades with a 5.56 price-to-earnings ratio and $5.16 million market capitalization. The stock has gained 71.15% year-to-date with an average daily volume of 6.49 million shares. The 52-week range spans $0.44 to $1.25.
According to SEC filings, Lazar now beneficially owns 77 million common shares, subject to ownership limitations pending shareholder approval.
Price Action: According to Benzinga Pro data, the California-based company experienced a 1.82% dip during regular trading hours on Tuesday.
Benzinga’s Edge Stock Rankings indicate that NBY has a Momentum score of 91.28 and a Value score of 33.74. Know how its momentum lines up with other well-known names.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
