For Investors

Press Release

Novan Announces Proposed Public Offering

February 27, 2020 at 4:01 PM EST

MORRISVILLE, N.C., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Novan, Inc. (“the Company” or “Novan”) (NASDAQ: NOVN) today announced that it intends to offer and sell a combination of shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and warrants to purchase shares of its common stock in an underwritten public offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The Company expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the number of shares of common stock and/or warrants to purchase common stock to be sold in the offering at the public offering price, less underwriting discounts and commissions.

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.

A shelf registration statement on Form S-3 (Registration No. 333-220761) relating to the public offering of the securities described above was filed with the Securities and Exchange Commission (“SEC”) and was declared effective on October 10, 2017. A preliminary prospectus supplement describing the terms of the offering will be filed with the SEC and will form a part of the effective registration statement. Electronic copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the offering may be obtained, when available, from H.C. Wainwright & Co., LLC, 430 Park Avenue 3rd Floor, New York, New York 10022, by calling (646) 975-6996 or by emailing placements@hcwco.com or at the SEC’s website at http://www.sec.gov.

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. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying base prospectus forming a part of the effective registration statement.

About Novan

Novan, 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 Statements

This 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; statements regarding our intention to offer and sell securities in an underwritten public offering; statements regarding our intention to file the preliminary prospectus supplement with the SEC; statements regarding our expectations as to the completion, timing, and size of the proposed public offering; and statements regarding the anticipated use of proceeds from the proposed 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 satisfaction of customary closing conditions related to the proposed public offering, risks and uncertainties as to the final terms of the proposed public offering, as well as 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
cikkala@novan.com

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Source: Novan, Inc.