Novan sells 5.04M shares at $1.19 in registered direct offering

Novan has entered into definitive agreements for the issuance and sale in a registered direct offering of an aggregate of 5,042,017 shares of its common stock and warrants to purchase up to 5,042,017 shares of common stock, at an effective combined purchase price of $1.19 per share and associated Common Warrant. The Common Warrants will become exercisable six months from the date of issuance at an exercise price of $1.20 per share and will expire five years following the initial exercise date. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The gross proceeds to Novan from this offering are expected to be approximately $6.0 million, before deducting the placement agent’s fees and other offering expenses payable by Novan. Novan intends to use the net proceeds from the offering to fund its berdazimer gel, 10.3% development program activities, support sales and marketing efforts for the Company’s marketed products and for general working capital purposes and other operating expenses. The offering is expected to close on or about March 16, 2023, subject to satisfaction of customary closing conditions.