Novan, Inc. has entered into a common stock purchase agreement of up to $25 million with Aspire Capital Fund, LLC, a Chicago-based institutional investor, according to a filing with the Securities and Exchange Commission.

According to the Form S-1 filing, any proceeds from the selling stockholder that Novan receives will be used for advancement of its research and development programs in dermatology, women’s health and GI therapies.

Novan issued 345,622 shares to Aspire Capital as a commitment fee, representing a dollar value equal to 3% of the aggregate amount authorized under the agreement. The rest of the purchases would occur at Novan’s discretion from time to time during a 30-month period.

According to the SEC filing, the sale is for up to 7.03 million shares of Novan’s common stock. The proposed maximum offering price per share is $2.11. As of Aug. 30, Novan had 26.07 million shares outstanding, excluding shares that have been issued to Aspire Capital.

“With compelling clinical data from over 3,000 patients in-hand and several late stage assets, we have a high degree of enthusiasm in reaching this agreement with the company,” said Steven Martin, managing member for Aspire, in a press release.

Novan is a clinical development-stage biotechnology company. Shares were trading at $2.47 Thursday, up 30 cents.