DURHAM – Pharmaceutical firm Novan raised $40 million in a stock offering, the firm announced Monday after the markets closed. Novan sold all the shares, not investors.
Share price was $11.
The sale impacted Novan shares slightly, the price dropping 48 cents to $10.39.
Novan sold 3.6 million shares and granted underwriters options for another 545,000 shares,
The company expects to net $40 million after expenses.
“Novan intends to use the net proceeds from the Offering, together with existing cash, to fund research and development program activities, including (i) preparing for and seeking regulatory approval of its product candidate SB206 as a treatment for molluscum contagiosum, (ii) planning for potential commercialization of SB206 and (iii) continuing research and development activities primarily related to its product candidate SB204 as a treatment for acne vulgaris, as well as for general corporate purposes,” the company said in a statement.
