NovaBay Pharmaceuticals Inc (NYSE:NBY) shares are lower by 66% to $0.67 over the trailing five sessions after announcing the pricing of its public offering of 3.2 million shares (or pre-funded warrants) and Series F-1, F-2, and F-3 warrants.

Each share (or pre-funded warrant) and associated warrants are priced at $1.10. The Series F-1 warrants expire in five years, the F-2 in six months and the F-3 in one year, all with a $1.10 exercise price.

Ladenburg Thalmann & Co. Inc., the underwriter, has a 45-day option to purchase an additional 477,272 shares and/or warrants for over-allotments. Expected gross proceeds are $3.5 million, or $4.0 million if the over-allotment option is fully exercised, before expenses.

NovaBay plans to use the funds to redeem outstanding debentures and for general corporate purposes. The offering is expected to close around July 29.

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Is NBY A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — like NovaBay Pharmaceuticals's page for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. NovaBay Pharmaceuticals does not pay a dividend, but obviously there are a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 9.16%, you'll need to buy a share of Allspring Inc Opps by Aug. 12, 2024. Once done, you can expect to receive a nominal payout of $0.05 on Sep. 3.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized.

Looking through the latest news on NovaBay Pharmaceuticals will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, NBY has a 52-week high of $44.80 and a 52-week low of $0.64.

Photo: Courtesy NBY