Novabay shares fall 12.59% after-hours following $100M at-the-market sales agreement with Virtu Americas.

NovaBay Pharmaceuticals (NBY) fell 12.59% in after-hours trading following the announcement of a $100 million at-the-market (ATM) sales agreement with Virtu Americas. The deal, filed with the SEC, allows NovaBay to sell shares directly on the NYSE or other markets through Virtu, which will receive up to 2% commission on gross proceeds. Investors reacted negatively, as ATM offerings typically raise concerns about shareholder dilution and signal potential capital-raising pressures. While the agreement is non-binding and termination clauses exist, the $100 million offering size—relative to the company’s market capitalization—sparked immediate selling pressure. The move aligns with broader market skepticism toward dilutive financing measures, particularly for smaller biotech firms. The offering is conducted under a pre-filed shelf registration, with no immediate requirement for share sales.