Novan Announces Closing of Initial Public Offering

DURHAM, N.C., Sept. 26, 2016 /PRNewswire/ -- Novan, Inc. (the "Company" or "Novan") (NASDAQ: NOVN) today announced the closing of the Company's initial public offering of 4,715,000 shares of common stock at a price to the public of $11.00 per share, which includes the exercise in full by the underwriters of their option to purchase from the Company an additional 615,000 shares of common stock at the initial public offering price, less the underwriting discount. All of the shares in the offering were offered by Novan. Gross proceeds to the Company from the sale of the shares, before deducting underwriters' discounts and commissions, total approximately $51.9 million.

Piper Jaffray & Co. acted as sole book-running manager for the proposed offering. JMP Securities LLC and Wedbush PacGrow acted as co-managers.

A registration statement relating to the shares was filed with the Securities and Exchange Commission and became effective on Sept. 20, 2016. The offering was made only by means of a prospectus. Copies of the final prospectus 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 [email protected].

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.

About Novan

Novan, Inc. is a late-stage pharmaceutical company focused on redefining the standard of care in dermatology through the development and commercialization of innovative therapies using the Company's nitric oxide platform. Nitric oxide plays a vital role in the natural immune system response against microbial pathogens and is a critical regulator of inflammation. Our ability to harness nitric oxide and its multiple mechanisms of action has enabled us to create a platform with the potential to generate differentiated, first-in-class product candidates. We are rapidly advancing programs in five dermatological conditions with significant unmet medical need. We believe that our ability to conveniently deploy nitric oxide on demand in topical formulations allows us the potential to significantly improve patient outcomes in a variety of skin diseases and positions us to be a commercially successful leader in the dermatology market.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements related to pharmaceutical development of nitric oxide-based product candidates and future prospects. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from our expectations. 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, except as expressly required by law.

CONTACT:

(Investors)
Sean Andrews, Senior Director of Investor Relations
Novan, Inc.
919-627-6847
[email protected]

(Media)
Deb Holliday
Pascale Communications, LLC
412-877-4519
[email protected]

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SOURCE Novan, Inc.