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Novan Announces Closing of $5.95 Million Public Offering, including Partial Exercise of the Underwriter’s Option to Purchase Additional Securities

MORRISVILLE, N.C., March 03, 2020 (GLOBE NEWSWIRE) — Novan, Inc. (“the Company” or “Novan”) (NASDAQ:NOVN) today announced the closing of the Company’s previously announced underwritten public offering of 18,333,334 shares of common stock (or pre-funded warrants to purchase common stock in lieu thereof) and warrants to purchase an aggregate of up to 18,333,334 shares of common stock, at a combined effective public offering price of $0.30 per share of common stock (or pre-funded warrant) and accompanying common warrant. The common warrants have an exercise price of $0.30 per share, are exercisable immediately and expire five years from the date of issuance. The Company also granted the underwriter a 30-day option to purchase up to an additional 2,750,000 shares of common stock and/or warrants to purchase 2,750,000 shares of common stock, which the underwriter partially exercised on March 2, 2020 to purchase 1,498,602 shares of common stock and common warrants to purchase up to 2,750,000 shares of common stock.
H.C. Wainwright & Co. acted as the sole book-running manager for the offering.The gross proceeds from this offering to Novan are approximately $5.95 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Novan. Novan intends to use the net proceeds from the offering to fund its research and development programs and for general working capital purposes and other operating expenses.The offering was made by Novan pursuant to a shelf registration statement (Registration No. 333-220761) filed by Novan with the Securities and Exchange Commission (“SEC”) that became effective on October 10, 2017. The offering was made by means of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus were filed with the SEC and may be obtained for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the public offering may be obtained by contacting H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, or by telephone at (646) 975-6996, or by email to placements@hcwco.com.This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.About NovanNovan, Inc. is a clinical development-stage biotechnology company focused on leveraging nitric oxide’s naturally occurring anti-microbial and immunomodulatory mechanisms of action to treat a range of diseases with significant unmet needs. We believe that our ability to deploy nitric oxide in a solid form, on demand and in localized formulations allows us the potential to improve patient outcomes in a variety of dermatology, women’s health and gastrointestinal diseases.Forward-Looking StatementsThis press release contains forward-looking statements including, but not limited to, statements related to pharmaceutical development of nitric oxide-releasing product candidates and our intention to advance development of certain product candidates and statements regarding the use of proceeds from the public offering. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from our expectations, including, but not limited to, risks and uncertainties associated with market conditions and the risks and uncertainties described in our annual report filed with the SEC on Form 10-K for the twelve months ended December 31, 2019, and in our subsequent filings with the SEC. These forward-looking statements speak only as of the date of this press release, and Novan disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances after the date of such statements, except as may be required by law.CONTACT:(Investors & Media)
Cole Ikkala
Director, Investor Relations, Communications & Business Development