NovaBay Pharmaceuticals Receives Noncompliance Notice from NYSE MKT

EMERYVILLE, Calif.–(BUSINESS WIRE)–NovaBay®
Pharmaceuticals, Inc.
(NYSE MKT: NBY) today announced receipt of a
letter from NYSE MKT LLC (“NYSE MKT” or the “Exchange”) on May 16, 2017,
stating that it is not in compliance with the continued listing
standards (requiring stockholders’ equity of $6.0 million or more if it
has reported losses from continuing operations and/or net losses in its
five most recent fiscal years) as set forth in Section 1003(a)(iii) of
the NYSE MKT Company Guide (“Company Guide”).

In order to maintain its listing, NovaBay Pharmaceuticals must submit a
plan of compliance by June 15, 2017, addressing how it intends to regain
compliance with Section 1003(a)(iii) of the Company Guide.

The Company intends to submit a plan to regain compliance with NYSE MKT
listing standards. If the plan is not accepted, delisting proceedings
will commence. If the plan is accepted, the Company’s common stock will
continue to be listed on the NYSE MKT during the plan period. However,
if the Company does not regain compliance with those standards or does
not make progress consistent with the plan, the NYSE MKT staff may
commence delisting proceedings.

About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics®

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focusing on
commercializing and developing its non-antibiotic anti-infective
products to address the unmet therapeutic needs of the global, topical
anti-infective market with its two distinct product categories: the
NEUTROX® family of products and the AGANOCIDE®
compounds. The Neutrox family of products includes AVENOVA®
for the eye care market, NEUTROPHASE® for wound care market,
and CELLERX® for the aesthetic dermatology market. The
Aganocide compounds, still under development, have target applications
in the dermatology and urology markets.

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NovaBay Contacts
For NovaBay Avenova
purchasing information, please contact:
800-890-0329
www.Avenova.com

Contacts

NovaBay Pharmaceuticals, Inc.
Thomas
J. Paulson
Chief Financial Officer
510-899-8809
Contact
Tom

or
Investor Contact
LHA
Jody
Cain
310-691-7100
Jcain@lhai.com