Poplar Point Capital increases stake in NovaBay Pharmaceuticals

Published 15/04/2025, 17:46
Poplar Point Capital increases stake in NovaBay Pharmaceuticals

In a series of transactions, Poplar Point Capital Partners (WA:CPAP) LP, along with its affiliates, has increased its holdings in NovaBay Pharmaceuticals, Inc. (NYSE:NBY), a company that has seen its stock decline 80% over the past year. The purchases, executed over several days in March, involved the acquisition of a total of 49,927 shares of NovaBay’s common stock, with transaction prices ranging from $0.6025 to $0.63 per share. The total value of these acquisitions amounted to approximately $30,717. According to InvestingPro data, the stock has shown recent momentum with an 18% gain in the past week.

The transactions were carried out by Poplar Point Capital Partners LP, Poplar Point Capital Management LLC, Poplar Point Capital GP LLC, and Jad Fakhry, who collectively filed the SEC Form 4. Following these purchases, the group now holds a total of 868,204 shares of NovaBay Pharmaceuticals, reflecting their position as a ten percent owner in the company. InvestingPro analysis reveals that NBY operates with moderate debt levels but faces short-term liquidity challenges with a current ratio of 0.68.

These acquisitions underscore Poplar Point Capital’s continued interest in NovaBay Pharmaceuticals, as the firm strengthens its investment in the pharmaceutical preparations sector. With an EBITDA of -$4.93M in the last twelve months, InvestingPro data shows the company faces profitability challenges, though it maintains a healthy gross profit margin of 66%.

In other recent news, NovaBay Pharmaceuticals, Inc. has finalized settlement agreements with three investment funds, resolving disputes over warrants linked to the company’s common stock. The settlements, involving Sabby Volatility Warrant Master Fund Ltd., Bigger Capital Fund, LP, and District 2 Capital Fund LP, are part of NovaBay’s broader efforts as it seeks stockholder approval for liquidation and dissolution. Despite these efforts, NovaBay did not receive the necessary shareholder vote to proceed with its proposed dissolution, as only about 49% of shareholders voted in favor, falling short of the required majority. The company’s board is considering holding a new special meeting to seek approval for the Plan of Dissolution.

Additionally, NovaBay has extended the contract of its CEO, Justin M. Hall, through December 31, 2025, as disclosed in a recent SEC filing. This extension is seen as a sign of stability and continuity in leadership. NovaBay recently completed the sale of its Avenova brand and related assets, marking the divestiture of its main revenue-generating operations. The company also sold its wound care trademarks and inventory to Phase One Health, LLC. These developments are based on recent press releases and SEC filings from NovaBay Pharmaceuticals.

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