DURHAM, N.C., June 13, 2022 (GLOBE NEWSWIRE) — Novan, Inc. (“the Company” or “Novan”) (Nasdaq: NOVN), today announced the closing of the Company’s previously announced registered direct offering priced at-the-market under Nasdaq rules with an institutional investor of an aggregate of (i) 2,080,696 shares of its common stock and accompanying warrants to purchase up to 2,080,696 shares of common stock and (ii) pre-funded warrants to purchase up to 3,180,615 shares of common stock and accompanying warrants to purchase up to 3,180,615 shares of common stock, resulting in total gross proceeds of approximately $15.0 million. The shares (or pre-funded warrants in lieu thereof) and accompanying warrants were sold together, each consisting of one share of common stock or a pre-funded warrant to purchase one share of common stock, as the case may be, and a warrant to purchase one share of common stock, at an offering price of $2.851 per share and accompanying warrant and $2.841 per pre-funded warrant and accompanying warrant. The pre-funded warrants are exercisable immediately, have an exercise price of $0.01 per share and will be exercisable until all of the pre-funded warrants are exercised in full. The warrants are exercisable immediately, have an exercise price of $2.851 per share, and will expire five years from the date of issuance. Oppenheimer & Co. Inc. acted as the sole placement agent for the offering. Brookline Capital Markets, a division of Arcadia Securities, 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) conducting small-scale drug substance and drug product manufacturing activities to support the SB206 regulatory submission process. The Company also intends to use the net proceeds from the offering (i) to support sales and marketing efforts for its marketed products; and (ii) for general corporate purposes, including selling, general and administrative expenses, capital expenditures and working capital needs. The securities described above were offered by Novan pursuant to a shelf registration statement (Registration No. 333-262865) filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on February 25, 2022. The offering was made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement and accompanying prospectus relating to the registered direct offering were filed with the SEC and may be obtained for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the public offering may be obtained by contacting Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad St., 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Novan Novan, Inc. is a medical dermatology company primarily focused on researching, developing and commercializing innovative therapeutic products for skin diseases. Our goal is to deliver safe and efficacious therapies to patients, including developing product candidates where there are unmet medical needs. We are developing SB206 (berdazimer gel, 10.3%) as a topical prescription gel for the treatment of viral skin infections, with current emphasis on molluscum contagiosum. We recently completed the acquisition of EPI Health. EPI Health equips us with a robust commercial infrastructure across sales, marketing, and communications, as well as fully dedicated market access and pharmacy relation teams. Following the acquisition, we employ approximately 100 staff, including sales personnel currently covering 42 territories, and we promote products for plaque psoriasis, rosacea, acne and dermatoses. We also have a pipeline of potential product candidates using our proprietary nitric oxide-based technology platform, NITRICIL™, to generate new treatments for multiple indications. Forward-Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “target,” “anticipate,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on the Company’s current beliefs and expectations. This press release contains forward-looking statements including, but not limited to, statements related to pharmaceutical development of nitric oxide-releasing product candidates and our intention to advance development of certain product candidates; statements relating to the expected proceeds from the Company’s offering; and statements regarding the anticipated use of proceeds from the offering. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from our expectations, including, but not limited to, risks and uncertainties associated with the clinical development and regulatory approval processes, as well as the risks and uncertainties described in our annual report filed with the SEC on Form 10-K for the twelve months ended December 31, 2021, and in our subsequent filings with the SEC. Such forward-looking statements speak only as of the date of this press release, and Novan disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances after the date of such statements, except as may be required by law. INVESTOR AND MEDIA CONTACT:Jenene Thomas JTC Team, LLC833-475-8247NOVN@jtcir.com