Novan Announces Closing of $40 Million Public Offering of Common Stock

Novan, Inc. (the "Company" or "Novan") (NASDAQ:NOVN) today announced the closing of the Company's previously announced underwritten public offering (the "Offering") of 3,636,364 shares of common stock at a public offering price of $11.00 per share. All of the shares of common stock sold in the offering were offered by the Company. In addition, the Company granted the underwriter of the Offering a 30-day option to purchase up to an additional 545,454 shares of its common stock. The gross proceeds from the offering were approximately $40 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company.

Cantor Fitzgerald & Co. acted as the sole book-running manager for the Offering. In addition, ROTH Capital Partners, LLC acted as financial advisor to the Company in connection with the Offering.

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.

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 clinical development-stage biotechnology company focused on leveraging its proprietary nitric oxide (NO) based technology platform, NITRICIL™ to generate macromolecular New Chemical Entities (NCEs) to treat multiple indications in dermatology, men's and women's health, infectious diseases and gastroenterology conditions with significant unmet needs. The Company's lead product candidate is SB206, a topical antiviral gel, for the treatment of molluscum contagiosum. The Company believes that SB206 as a topical, at-home, caregiver-applied therapy with a rapid treatment benefit, if approved, would address an important patient-care need for the treatment of molluscum contagiosum.