Novan Stock Falls After Raising $40M Via Equity At 21% Discount

Novan Inc (NASDAQ:NOVN) priced its previously announced public offering of 3.6 million shares at $11/share for gross proceeds of approximately $40 million.
The offer price represents a 21% discount on the last close price of $13.85 on Wednesday. The offering will close by June 21.
Underwriters have an option to purchase up to 545k additional shares.
Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.
Novan intends to use the net proceeds to fund the R&D of SB206, as well as for general corporate purposes.
Last week, the company announced positive topline efficacy and safety results from the Phase 3 trial of SB206 for molluscum contagiosum.
Price Action: NOVN shares are down 20.9% at $10.96 during the market session on the last check Thursday.