NovaBay Pharmaceuticals (NBY) Stock: Why Shares Exploded 103% on Friday

TLDR

• NovaBay Pharmaceuticals stock surged 103% Friday, closing at $19.16 with 10 million shares traded.
• The company sold Avenova trademark to PRN Physician Recommended Nutriceuticals effective January 17, 2025.
• NovaBay board approved dissolution plan for shareholder vote to unlock remaining value.
• Pre-funded warrants allow conversion to common shares after January 1, 2026, pending approval.
• Next earnings report scheduled for March 26 after market close.

NovaBay Pharmaceuticals closed Friday up 103% at $19.16. The stock opened lower and climbed throughout the session.

NovaBay Pharmaceuticals, Inc., NBY

Trading volume exceeded 10 million shares during regular hours. That volume brought the stock back onto momentum trader watchlists.

The intraday range stretched from $9.69 to $19.95. After-hours pricing showed shares near $20.50 heading into the weekend.

NovaBay sold its Avenova trademark to PRN Physician Recommended Nutriceuticals. The transaction became effective January 17, 2025, according to SEC filings.

The company also sold PhaseOne and NeutroPhase U.S. trademarks. That deal closed January 8, 2025.

Dissolution Plan Gets Board Approval

The board determined dissolution offers the best path to unlock remaining shareholder value. Investors will vote on the wind-down plan in coming months.

NovaBay held $5.3 million in cash and equivalents at the end of June 2025. Outstanding shares totaled 5.82 million as of August 12, 2025.

Last August, NovaBay paid a special cash dividend of $0.80 per share. CEO David Lazar described it as a commitment to returning value directly to stockholders.

The stock previously hit a 52-week high of $11.49. That milestone marked a 2,141% gain over the prior year.

Warrant Structure and Leadership Change

Pre-funded warrants linked to an investor agreement can convert to common shares after January 1, 2026. Shareholder approval is required for conversion.

The warrant structure lets buyers pay upfront and convert shares later. This setup is common in small-cap financing deals.

CEO David Lazar will resign following a stock transfer agreement with R01 Fund LP and Framework Ventures IV L.P. Lazar will transfer rights to 441,325 shares of Series D Non-Voting Convertible Preferred Stock.

He will also transfer purchase rights for 268,750 shares of Series E Non-Voting Convertible Preferred Stock. Both transfers are part of the investor agreement.

NovaBay’s market cap reached $1.38 billion despite revenue of just $10.3 million. The company posted revenue growth of 390% but analysts don’t expect profitability this year.

The stock delivered a 2,104% return over six months. The past week alone showed a 61% gain before Friday’s doubling.

Small-cap stocks with thin trading can see sharp price swings. The same volume driving rallies can reverse quickly on profit-taking or outlook changes.

Markets reopen Monday with focus on whether volume continues. Traders are watching for any new company disclosures after last week’s move.

NovaBay’s next earnings report is due March 26 after the close.

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