Novan drops on planned stock deal

NVN Liquidation

16/06/2021 21:35

** Novan Inc  NOVN.O  shares down ~11% in extended trading
as biotech firm looks to raise equity
    ** After the bell, co announces stock offering; deal size
not disclosed  urn:newsml:reuters.com:*:nGNX577WF7
    ** Sources say sole bookrunner Cantor Fitzgerald marketing
~$30 mln deal
    ** 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
    ** Shares on Weds fell 9.4% to $13.85. Co has ~$210 mln
market cap based on ~15.2 mln shares outstanding per Refinitiv
data

 (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))