Novan raises $38M follow-on

Novan Inc. (NASDAQ:NOVN) raised $38 million through the sale of 10 million shares at $3.80 in a follow-on underwritten by Piper Jaffray. Each share includes a four-year warrant to purchase a share at $4.66. The price is a 12% discount to Novan's close of $4.30 on Wednesday, before it proposed the follow-on.

Novan is developing nitric oxide (NO)-releasing compounds to treat dermatology and oncovirus-mediated diseases. The company's SB206 has completed a Phase II trial to treat genital warts caused by HPV. This half, Novan plans to begin a Phase I pharmacokinetic trial of the topical NO-releasing compound...