Novan Announces Closing of Offering of Common Stock and Warrants
January 11 2018 - 9:15AM
Novan, Inc. (the “Company" or "Novan") (NASDAQ:NOVN) today
announced that it has closed its previously announced underwritten
public offering. The terms of the completed offering are
consistent with the terms which were outlined in the Company's
press release on January 5, 2018.
The net proceeds to the Company from this
offering are expected to be approximately $35.2 million, after
deducting underwriting discounts and commissions and other
estimated offering expenses payable by the Company, and excluding
any proceeds the Company may receive upon exercise of the
Warrants.
With the proceeds from the offering and existing
cash, the Company plans to fund research and development programs
primarily in the fields of virology and immunology totaling
approximately $27.0 million, including the advancement of
clinical-stage SB206 topical antiviral and SB414 topical
anti-inflammatory programs and the expansion of the antiviral
program for treatment of neoplasias caused by high-risk HPV
infections, as well as for existing and future product candidates
in other fields. The balance is expected to be used for general
corporate purposes, including general and administrative expenses,
capital expenditures and working capital.
Piper Jaffray & Co. acted as the sole
manager for the offering.
The offering was made by Novan pursuant to a
shelf registration statement filed by Novan with the Securities and
Exchange Commission ("SEC") that became effective on October 10,
2017. A final prospectus supplement related to the offering was
filed with the SEC and is available on the SEC's website located at
http://www.sec.gov. Copies of the final prospectus supplement and
the accompanying prospectus related to this offering may be
obtained from Piper Jaffray & Co., by mail at Attention:
Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN
55402, by telephone at (800) 747-3924 or by email at
prospectus@pjc.com.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of, any security 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 Novan
Novan, Inc. is a clinical-stage biotechnology
company focused on leveraging nitric oxide’s natural antiviral and
immunomodulatory mechanisms of action to treat dermatological and
oncovirus-mediated diseases. We believe that our ability to
conveniently deploy nitric oxide in a solid form, on demand and in
localized formulations allows us the potential to significantly
improve patient outcomes in a variety of diseases.
Forward-Looking Statements
This press release contains forward-looking
statements including, but not limited to, statements related to
expectations about the use of proceeds from a 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, uncertainties
and risks in the clinical development process, including, among
others, length, expense, ability to enroll patients, reliance on
third parties, and outcomes of our current clinical trials and
future preclinical studies and clinical trials, including the
timing of initiation of such trials and availability of data from
such trials, and that results of earlier research and preclinical
or clinical trials may not be predictive of results, conclusions or
interpretations of later research or trials; the lengthy and
unpredictable nature of the U.S. Food and Drug Administration’s
drug approval process; whether we will be able to enter into
strategic arrangements or obtain adequate funding to support our
operations and initiatives on acceptable terms, or at all; and
other risks and uncertainties described in our annual report filed
with the SEC on Form 10-K for the twelve months ended Dec. 31,
2016, 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)Novan, Inc.investors@novan.com
(Media)Cari GreenDirector, Corporate Communications and
Administrationcgreen@novan.com
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