NovaBay Pharmaceuticals Completes Sale of Wound Care Product Trademarks and Inventory

NovaBay Pharmaceuticals, Inc. recently finalized an agreement pertaining to the sale of its wound care product trademarks and inventory. On January 3, 2025, the company entered into a Trademark Acquisition Agreement with Phase One Health LLC, a Tennessee limited liability company, for the purchase of trademarks including NeutroPhase, PhaseOne, and OmniPhase for a total of $500,000. This agreement also included the sale of the company’s existing wound care inventory to Phase One for an additional $126,000.

In conjunction with this transaction, a Transition Services Agreement was also established, outlining that NovaBay Pharmaceuticals would provide transition services to Phase One until January 10, 2025. Additionally, the company would sell the remaining empty wound care product bottles to Phase One, ultimately terminating the supplier and distributor relationship between the two entities upon the completion of the sale.

It is important to note that these assets were excluded from the Asset Sale Transaction, a separate agreement made by the company to sell its eye care products under the Avenova brand. This particular sale, which encompasses most of the company’s assets, is pending stockholder approval.

The Trademark Acquisition Agreement includes customary representations, warranties, and agreements typically found in such transactions, with NovaBay Pharmaceuticals agreeing to indemnify Phase One for any losses arising from third-party claims related to breaches or nonperformance under the agreement. NovaBay’s liability for such losses is capped at 50% of the purchase price for the trademarks.

The completion of the sale occurred on January 8, 2025, with the company receiving $500,000 for the trademarks and $126,000 for the inventory. NovaBay intends to utilize the proceeds from these transactions to support its working capital needs, ongoing operations, and general corporate purposes.

For comprehensive details regarding these agreements, including complete terms and obligations, interested parties are encouraged to refer to Exhibits 2.1 and 10.1 attached to NovaBay Pharmaceuticals’ recent Form 8-K filing with the Securities and Exchange Commission.

As of now, NovaBay Pharmaceuticals, with the completion of these sales, expects to enhance its financial position and continues to focus on its operational objectives moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NovaBay Pharmaceuticals’s 8K filing here.

About NovaBay Pharmaceuticals

NovaBay Pharmaceuticals, Inc develops and sells eyecare and wound care products in the United States and internationally. It offers Avenova Spray, a solution for removing foreign materials, including microorganisms and debris from skin around the eye, such as the eyelid; Avenova Eye Health Support antioxidant-rich oral supplements; Avenova Lubricating Eye Drops for instant relief; NovaWipes by Avenova; Avenova WarmEye Compress to soothe the eyes; and the i-Chek by Avenova to monitor physical eyelid health.