Novan drops on $40 mln stock offering

NVN Liquidation

17/06/2021 14:28

** Novan Inc  NOVN.O  shares down ~19% premarket after
biotech firm prices follow-on
    ** Co sells ~3.6 mln shares at $11, raises $40 mln
 urn:newsml:reuters.com:*:nGNX1dJP37
    ** Offering prices at ~21% discount to stock's last sale
    ** Deal size represents nearly a quarter of co's ~15.2 mln
shares outstanding, per Refinitiv data
    ** Novan plans to use net proceeds to help fund R&D, seek
regulatory approval for SB206 as treatment for skin infection
molluscum contagiosum, and continue development of candidate
SB204 for treatment of acne vulgaris
    ** Last Fri, NOVN shares soared 62% to $14.68 after co said
SB206 met main goal in late-stage study  urn:newsml:reuters.com:*:nL3N2NT2P0
    ** Sources say sole bookrunner Cantor Fitzgerald had
marketed ~$30 mln equity raise upon deal launch late
Weds urn:newsml:reuters.com:*:nL2N2NY33X
    

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))