Novan Closes Offering of Common Stock and Warrants

1/11/18

MORRISVILLE, N.C., Jan. 11, 2018 (GLOBE NEWSWIRE) -- 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.

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