MORRISVILLE, N.C., March 24, 2020 (GLOBE NEWSWIRE) -- Novan, Inc. (NASDAQ:NOVN) today announced that it has entered into definitive agreements with several institutional and accredited investors for the issuance and sale of 18,604,652 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) at an effective purchase price of $0.43 per share (or pre-funded warrant) in a registered direct offering priced at-the-market under Nasdaq rules.

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 $8.0 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 research and development programs and for general working capital purposes and other operating expenses. The offering is expected to close on or about March 26, 2020, subject to customary closing conditions.

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.