Eye-care focused NovaBay Pharmaceuticals (NYSE: NBY)has secured a three year US$3 million bridge loan, it told investors.
The group is focused on commercialising prescription Avenova lid and lash cleanser for the eye care market, which is formulated with Neutrox, which is cleared by the US Food and Drug Administration (FDA) as a medical device.
The loan, managed by China Kington Asset Management, is funded by five investors including NovaBay’s chairman and interim chief executive Mark Sieczkarek, NovaBay board members Gail Maderis and Dr Alex McPherson, as well as China Pioneer Pharma - NovaBay’s largest shareholder.
The company has already received around US$1.66 million, with the remaining $1.37 million to be funded later this month.
“This loan provides NovaBay and our shareholders with non-dilutive funds as we focus on growing Avenova sales and achieving our target of positive cash flow from operations by the end of 2016,” said Sieczkarek.
“My decision to participate in the loan reflects my optimism with NovaBay’s new business model, and I’m delighted that China Kington and China Pioneer Pharma are demonstrating their ongoing confidence in NovaBay,” stated Ms. Maderis.
“With new record high sales every quarter since launched last year, we are encouraged by the early market traction for Avenova, and we are enthusiastic about the future prospects for NovaBay,” said Eric Wu, of China Kington Asset Management.