New York, January 11, 2026, 07:38 EST — The market has closed.
Shares of NovaBay Pharmaceuticals, Inc (NBY) soared Friday, closing up 102.5% at $19.16. The NYSE American stock will remain in focus when U.S. markets reopen Monday.
Friday’s session ended a wild ride for the microcap, with shares bouncing between $9.69 and $19.95. Trading volume surged to roughly 10 million shares, a big jump from around 1.3 million the day before, according to stock data.
Why it matters now: investors are digging into older filings for signs of potential dilution — when new shares or similar securities hit the market, existing shareholders end up with a smaller piece of the pie. One filing outlined pre-funded warrants, which act like almost fully paid options to buy stock, set to become exercisable after Jan. 1, 2026, pending shareholder approval.
In an August filing, the company revealed it chose to follow a strategic investment route instead of moving forward with its earlier approved liquidation plan. NovaBay noted that the preferred stock sold in that financing, once converted, would account for over 90% of the common stock on a fully diluted basis.
David E. Lazar, the investor behind the deal, stepped in as CEO. “In making this significant investment in NovaBay, I look forward to maintaining NovaBay’s public listing,” Lazar said at the time. GlobeNewswire
In October, NovaBay announced it had met the NYSE American’s minimum stockholders’ equity requirements again, following fundraising through pre-funded warrants and Series E non-voting convertible preferred stock. The company confirmed the exchange had verified the equity-related deficiencies were cleared.
NovaBay makes and markets eyecare and wound-care products, including Avenova, an antimicrobial solution for lids and lashes, and PhaseOne, a skin and wound cleanser based on hypochlorous acid, the company states.
Friday’s session saw the Dow climb while the Nasdaq Composite dipped, leaving the market mixed. That kind of environment tends to hit small, volatile stocks hardest, since they often move on shifts in risk appetite rather than underlying fundamentals.
That same capital structure that kept NovaBay on the exchange could complicate things for shareholders in the short term. If additional securities convert or get exercised, the share count could spike fast, putting downward pressure on the stock. With thin trading volumes, the price swings can be sharp and unpredictable.
This week, traders are watching closely for new filings on share issuance, conversion approvals, or updates on transactions. A major macro event is the U.S. Consumer Price Index report for December 2025, scheduled for release Jan. 13 at 8:30 a.m. Eastern Time.
