NovaBay Pharmaceuticals Announces Name Change to Stablecoin Development Corporation, Reports Initial Staking Rewards, and Provides SKY Token Holdings Update

Rhea-AI Summary

Stablecoin Development Corporation (formerly NovaBay Pharmaceuticals, NYSE: NBY → SDEV) will change its name and ticker, effective April 3, 2026. The company raised approximately $134 million in a January 2026 private placement and holds ~2.06 billion SKY tokens (≈8.78% supply) as of March 16, 2026.

SDEV reported cumulative staking rewards of ~26.6 million SKY, acquired ~1.09 billion SKY on-market at ~$0.065 each using ~$70.7 million, and says warrants carry a weighted-average exercise delay of ~9.9 months.

Positive

• $134 million private placement closed in January 2026
• Holds 2.06 billion SKY tokens (~8.78% of supply) as of March 16, 2026
• Generated ~26.6 million SKY in cumulative staking rewards

Negative

• Spent $70.7 million acquiring 1.09 billion SKY on open market (dilution of cash reserves)
• Warrants have a weighted-average delay of ~9.9 months before shares eligible for issuance

News Market Reaction – NBY

+18.97%

21 alerts

+18.97% News Effect

+35.7% Peak in 27 hr 40 min

+$7M Valuation Impact

$46.59M Market Cap

1.1x Rel. Volume

On the day this news was published, NBY gained 18.97%, reflecting a significant positive market reaction. Argus tracked a peak move of +35.7% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $7M to the company's valuation, bringing the market cap to $46.59M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

January 2026 Private Placement: $134 million gross proceeds Pre-funded warrants: 167,539,226 shares SKY token holdings: 2.06 billion SKY tokens +5 more

8 metrics

January 2026 Private Placement $134 million gross proceeds Pre-funded warrants for 167,539,226 common shares

Pre-funded warrants 167,539,226 shares Issued January 16, 2026 (post 1-for-5 split)

SKY token holdings 2.06 billion SKY tokens Held as of March 16, 2026 (~8.78% of supply)

Staking rewards 26.6 million SKY tokens Cumulative rewards since commencing on-chain staking

Open-market SKY purchases 1.09 billion SKY tokens Acquired using $70.7 million at ~$0.065 per token

SKY received in placement 943,599,689 SKY tokens Component of January 2026 consideration (valued at ~$58.0M)

Cash and stablecoins $25.0M cash, $51.0M stablecoins Non-SKY consideration from January 2026 Private Placement

Authorized common shares 5,000,000,000 shares New authorization per amended charter

Market Reality Check

Price: $1.5300 Vol: Volume 126,673 is well be...

low vol

$1.5300 Last Close

Volume Volume 126,673 is well below the 20-day average of 685,562 (relative volume 0.18x). low

Technical Shares trade below the 200-day MA at 9.69, with price at 1.16 pre-announcement.

Peers on Argus

Scanner flags a broader move in biotech peers: EDSA up 9.12%, while LGVN and PUL...

1 Up 2 Down

Scanner flags a broader move in biotech peers: EDSA up 9.12%, while LGVN and PULM show declines of 6.12% and 5.62%. Sector momentum summary notes a median move of about -5.9%, suggesting wider industry volatility around this name-change and crypto-strategy news.

Historical Context

1 past event · Latest: Oct 20 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Oct 20	Listing compliance	Positive	-10.8%	Regained NYSE American listing compliance after equity raises lifted stockholders’ equity.

Pattern Detected

Prior positive corporate development (listing compliance) saw a negative -10.77% reaction, hinting at skepticism toward strategic shifts.

Recent Company History

In October 2025, NovaBay reported regaining NYSE American continued listing compliance after raising approximately $6.0 million via pre-funded warrants and about $2.15 million through Series E preferred stock, bringing stockholders’ equity above the $6.0 million threshold. Despite this objectively positive milestone, the stock fell 10.77% over the next day. Today’s announcement of a full pivot toward SKY tokens, staking rewards, and a new Stablecoin Development Corporation identity continues the shift away from the legacy business highlighted in recent filings.

Regulatory & Risk Context

Active S-3 Shelf · $200,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-25

$200,000,000 registered capacity

An effective shelf registration amendment filed on November 25, 2025 allows the company to offer up to $200,000,000 of various securities over time, providing flexibility for additional capital raises alongside the large January 2026 private placement and ongoing shift into blockchain-focused assets.

Market Pulse Summary

The stock surged +19.0% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +19.0% in the session following this news. A strong positive reaction aligns with the scale of NovaBay’s strategic transformation. The company reported gross proceeds of about $134 million from a January 2026 private placement and now holds roughly 2.06 billion SKY tokens, around 8.78% of supply, plus cumulative staking rewards of 26.6 million SKY. However, the $200,000,000 shelf and authorization for 5,000,000,000 common shares highlight ongoing equity-issuance capacity that could weigh on longer-term sentiment.

Key Terms

pre-funded warrants, reverse stock split, stablecoins, staking, +2 more

6 terms

pre-funded warrants financial

"SDEV issued pre-funded warrants to purchase an aggregate of 167,539,226 shares"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

reverse stock split financial

"as adjusted for the 1-for-5 reverse stock split effected on February 23, 2026"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

stablecoins financial

"stablecoins represent the most compelling structural opportunity in digital finance"

Stablecoins are a type of digital currency designed to maintain a steady value, often linked to traditional currencies like the dollar or euro. They function like digital cash that offers the convenience of online transactions while avoiding the large price swings common with other cryptocurrencies. This stability makes them useful for investors and users who want a reliable way to store and transfer value without exposure to sudden market changes.

staking technical

"on-chain staking activities. The majority of the Company’s SKY holdings are currently deployed"

Staking is the practice of locking up digital tokens to help run a blockchain network in return for rewards, similar to leaving money in a time deposit that pays interest while it’s unavailable. It matters to investors because staking can generate regular income and affect a token’s circulating supply and price, but it also ties up assets and can carry risks like lock-up periods, reduced liquidity, or technical and platform failures.

on-chain technical

"adopted an on-chain holding company framework focused on long-duration participation"

On-chain describes actions or data that are recorded directly on a blockchain, a public digital ledger that creates a permanent, time-stamped record of transactions. For investors, on-chain activity provides verifiable evidence of transfers, ownership changes or automated program actions (like contract-driven payments); seeing these entries is like checking a bank statement and helps assess liquidity, settlement finality, fees, and transparency when judging risk and market behavior.

protocol governance technical

"Staking rewards are determined by protocol governance parameters, the level of overall"

Protocol governance is the system of rules and decision-making processes that determine how a digital or technical platform is changed, run, and maintained over time. Think of it like the bylaws and voting process of a neighborhood association that decide repairs, fees, and new features; investors care because governance shapes who can make changes, how quickly risks or upgrades are handled, and how value and rewards are distributed, all of which can affect security, costs and the potential return on investment.

AI-generated analysis. Not financial advice.

Following $134 million investment from R01 Fund LP, Framework Ventures, Tether Investments, S.A. de C.V., and Sky Frontier Foundation, Stablecoin Development Corporation has acquired 2.06 billion SKY tokens

Key Highlights:

• Corporate name change from NovaBay Pharmaceuticals, Inc. to Stablecoin Development Corporation; ticker symbol change from NBY to SDEV on the NYSE American, expected to be effective on Friday, April 3, 2026
• Approximately 2.06 billion SKY tokens held as of March 16, 2026, representing approximately 8.78% of the total supply of SKY
• Approximately 26.6 million SKY tokens earned in cumulative staking rewards since commencing on-chain staking activities
• Approximately 1.09 billion SKY tokens acquired on the open market at an average purchase price of approximately $0.065 per SKY token

EMERYVILLE, Calif., March 23, 2026 (GLOBE NEWSWIRE) -- NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) (to be renamed Stablecoin Development Corporation (NYSE American: SDEV)) (“NovaBay,” “SDEV,” or the “Company”) today announced that it will change its name to Stablecoin Development Corporation and its NYSE American ticker symbol to SDEV. The Company also provided an update on its previously disclosed strategic investment transaction, on-chain holding company strategy, and initial staking rewards.

“We are building the premier public market vehicle to access cash flows within the growing stablecoin economy,” said Michael Kazley, Chief Executive Officer of SDEV. “The name change to Stablecoin Development Corporation reflects our conviction that stablecoins represent the most compelling structural opportunity in digital finance. With over 2 billion SKY tokens and an active staking program generating protocol-level rewards, we are positioning SDEV at the center of this rapidly evolving ecosystem.”

Private Placement Overview

As reported in the Company’s SEC filings, on January 16, 2026, SDEV entered into a Securities Purchase Agreement with R01 Fund LP, Framework Ventures L.P., Tether Investments, S.A. de C.V., and Sky Frontier Foundation (collectively, the “Purchasers”). Pursuant to the agreement, SDEV issued pre-funded warrants to purchase an aggregate of 167,539,226 shares of its common stock (as adjusted for the 1-for-5 reverse stock split effected on February 23, 2026), resulting in gross proceeds of approximately $134 million (the “January 2026 Private Placement”). The Company has continued to deploy capital toward the acquisition of additional SKY tokens on the open market.

The private placement financing was accompanied by a broader strategic realignment under which SDEV adopted an on-chain holding company framework focused on long-duration participation in protocol-level digital asset ecosystems, subject to robust governance and risk management oversight.

Staking Rewards and Additional SKY Acquisitions

As of March 16, 2026, the Company has earned approximately 26.6 million SKY tokens in cumulative staking rewards since commencing on-chain staking activities. The majority of the Company’s SKY holdings are currently deployed in the Sky protocol’s staking program. Staking rewards are determined by protocol governance parameters, the level of overall participation in the staking program, and other factors, and are subject to variability over time.

As part of the January 2026 Private Placement, the Company received approximately 943,599,689 SKY tokens (valued at approximately $58.0 million) as a component of the transaction consideration, in addition to $25.0 million in cash, $51.0 million in stablecoins. Since the closing of the private placement, SDEV has acquired approximately 1.09 billion additional SKY tokens on the open market using $70.7 million of proceeds from the January 2026 Private Placement, at an average purchase price of approximately $0.065 per SKY token. As of March 16, 2026, the Company holds approximately 2.06 billion SKY tokens, representing approximately 8.78% of the total supply of SKY. All SKY tokens acquired by the Company outside of the January 2026 Private Placement have been purchased as freely tradable tokens through open-market transactions, consistent with the Company’s digital asset policies.

Structure Designed for Long-Duration Alignment and Orderly Market Profile

The warrants issued in the January 2026 Private Placement become exercisable in sequential tranches over an extended period, resulting in a weighted-average delay of approximately 9.9 months before all underlying shares could become eligible for issuance. This tiered structure is intended to support an orderly market profile as the Company executes its strategy.

In addition, the Securities Purchase Agreement includes post-issuance trading covenants designed to promote stable market dynamics. Following any exercise of a warrant tranche, each Purchaser’s aggregate daily sales (together with affiliates) are capped at 10% of SDEV’s 30-day average daily trading volume. These volume limitations apply uniformly across all Purchasers, such that every share issued in the transaction is subject to the same post-issuance framework. The Company believes this structure reflects a shared orientation toward long-term alignment rather than short-duration liquidity objectives.

On-Chain Holding Company Framework

SKY, the native token of the Sky protocol ecosystem, is currently the only digital asset approved under SDEV’s operating and risk management framework. Following its strategic realignment in early 2026, the Company adopted a multi-year capital allocation strategy designed to operate within an on-chain holding company model. Under this framework, SDEV may hold protocol-aligned digital assets for extended periods in order to participate in protocol-level economic activity, while retaining the flexibility to monetize holdings from time to time for general corporate purposes, including liquidity management and tax planning, subject to applicable law and governance oversight. This framework enables the Company to seek long-term economic participation in emerging decentralized networks, subject to prudent risk management and board-level governance controls.

Stablecoins Context and Institutional Participation

SDEV views stablecoins as an increasingly important component of global digital financial infrastructure, with expanding use cases across settlement, payments, yield generation, and on-chain capital markets amid evolving regulatory frameworks in the United States and internationally. SDEV is particularly interested in the rise of yield-bearing stablecoins, which generate returns by deploying underlying reserves across diversified strategies spanning real-world asset allocations, on-chain lending, and protocol-native revenue streams. These instruments represent a compelling evolution in digital finance, functioning as productive financial assets that unlock new primitives for savings, treasury management, and capital formation.

Additionally, the participation of Tether Investments, S.A. de C.V., an affiliate of the issuer of USDT, in the January 2026 Private Placement reflects notable institutional engagement within the broader stablecoin and digital asset ecosystem. The Company believes this participation underscores growing institutional interest in stablecoin-enabled financial infrastructure and related protocol ecosystems.

On-Chain Participation and Protocol-Published Rewards

SDEV engages in SKY-related on-chain activities, including staking within the Sky protocol. As disclosed above, these activities have generated approximately 26.6 million SKY tokens in cumulative staking rewards as of March 16, 2026. Such activities are conducted within established risk management parameters and may change over time based on market conditions, protocol governance decisions, and regulatory considerations.

Certain Sky protocol interfaces publish estimated annualized staking reward rates for SKY. These figures are variable, subject to change, and determined by a combination of protocol governance parameters and the market price of SKY at the time of calculation. Published rates are provided for informational purposes only and do not represent guaranteed yields, returns, or income streams for SDEV or any other participant. Actual results may differ materially.

About the Sky Protocol

Sky Protocol is a decentralized finance platform that evolved from MakerDAO, one of the earliest and most established projects in the digital asset ecosystem. The protocol enables the creation and use of USDS, a decentralized stablecoin pegged to the U.S. dollar, and serves as foundational financial infrastructure for lending, savings, and on-chain capital markets. SKY is the governance token of the Sky protocol ecosystem; holders participate in protocol governance through an open, transparent on-chain voting process. The protocol generates revenue from borrowing fees and other economic activity, which is used to fund open-market buybacks of SKY tokens that are then distributed to stakers. SKY has a fixed total supply of approximately 23.46 billion tokens. For more information, visit info.skyeco.com.

Corporate Name Change

The Company has approved a change of its corporate name from NovaBay Pharmaceuticals, Inc. to Stablecoin Development Corporation, reflecting the Company’s strategic realignment as an on-chain holding company focused on protocol-aligned digital assets within the Sky protocol ecosystem. In connection with the name change, the Company’s common stock is expected to begin trading on the NYSE American under the new ticker symbol “SDEV” on Friday, April 3, 2026. The name change does not affect the Company’s corporate structure, outstanding shares, or the rights of its stockholders.

Channels for Disclosure of Information

Going forward, the Company intends to announce material information to the public through filings with the Securities and Exchange Commission (the “SEC”), the investor relations page on its website, press releases, public conference calls, public webcasts, its X (Twitter) account, and its LinkedIn page. The information disclosed in the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels. Investors are always encouraged to refer to SDEV’s filings with the Securities and Exchange Commission for additional information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s strategy; the Company’s anticipated name change and ticker symbol change; the expected timing of the commencement of trading under the new name and ticker symbol; the Company’s capital allocation strategy; the Company’s plans to hold, stake, and potentially monetize SKY tokens and other digital assets; the Company’s views regarding the growth and development of the stablecoin economy and related digital asset infrastructure; the variability of staking rewards and protocol governance parameters; and the Company’s intentions regarding future SKY token acquisitions. These forward-looking statements are based on management's current expectations and involve known and unknown risks and uncertainties, including risks related to the volatility of digital asset markets, regulatory developments affecting digital assets and staking activities, changes in protocol governance parameters, cybersecurity risks, and other risks and uncertainties described in the Company’s most recent Annual Report on Form 10-K filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in the Company’s subsequent filings with the SEC. The forward-looking statements in this press release represent management’s views as of the date hereof. Actual results may differ materially from those expressed or implied in any forward-looking statements. SDEV undertakes no obligation to update forward-looking statements except as required by law.

About Stablecoin Development Corporation (currently NovaBay Pharmaceuticals, Inc.)

Stablecoin Development Corporation (NYSE American: SDEV), currently operating as NovaBay Pharmaceuticals, Inc. (NYSE American: NBY), is an on-chain holding company focused on long-duration participation in protocol-aligned digital asset ecosystems. The Company’s initial digital asset focus is the Sky protocol ecosystem, with SKY as its core holding. Through staking and other on-chain activities, the Company seeks to generate protocol-level economic returns while maintaining rigorous governance and risk management oversight. The Company has announced that it will change its name to Stablecoin Development Corporation and its ticker symbol to SDEV, with trading under the new name expected to commence on Friday, April 3, 2026. Headquartered in Emeryville, California, the Company is committed to prudent governance, regulatory compliance, and long-term shareholder value creation. For more information, please visit www.novabay.com.

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Company Contact:
Tommy Law
Chief Financial Officer
tlaw@novabay.com

FAQ

When does NovaBay's ticker change from NBY to SDEV take effect on the NYSE American?

The ticker change to SDEV is expected to become effective on April 3, 2026. According to the company, the name and symbol change aligns with its new stablecoin-focused strategy and NYSE American listing transition.

How many SKY tokens does Stablecoin Development Corporation hold and what percent of supply is that?

SDEV holds approximately 2.06 billion SKY tokens, about 8.78% of total supply as of March 16, 2026. According to the company, this total includes private placement consideration plus open-market purchases.

What were SDEV's cumulative staking rewards from SKY as of March 16, 2026?

The company reported cumulative staking rewards of approximately 26.6 million SKY since commencing on-chain staking activities. According to the company, staking rewards are variable and depend on protocol parameters and participation.

How many SKY tokens were acquired on the open market and at what average price?

SDEV acquired about 1.09 billion SKY on the open market at an average purchase price of roughly $0.065 per SKY. According to the company, these purchases used about $70.7 million of private placement proceeds.

What is the structure and timing of the warrants issued in the January 2026 private placement?

The warrants become exercisable in sequential tranches with a weighted-average delay of approximately 9.9 months before full eligibility. According to the company, the tiered structure aims to support an orderly market profile.