As a result of its subsidiary entering into a finance deal, Novan Inc. (NASD: NOVN) is soaring on the charts today, up 18.42% to trade at $1.35 at the most recent check.
Which contract has the NOVN subsidiary entered?
EPI Health, LLC, a fully consolidated subsidiary of Novan (NOVN), has inked accounts receivable-backed factoring arrangement with Bay View Funding, a wholly owned subsidiary of Heritage Bank of Commerce, to support its operations (Nasdaq: HTBK).
This agreement with Bay View provides Novan with another non-dilutive funding source that enables it to manage its working capital in a way that will support the consolidation of its company and the pursuit of its strategic goals. NOVN added this factoring agreement to its potential resources for the Company as it works to carry out commercial growth initiatives.
In November, NOVN signed a memorandum of understanding for the potential out-licensing of its Rhofade product in Japan, with any funding to be dependent on entering into a definitive agreement. Up to 70% of EPI Health’s gross eligible receivables will be funded under the new $15.0 million factoring facility.
Bay View will help EPI Health by supplying quick cash flow related to its select customer base and potential future expansion. Along with collaborating with the commercial team at EPI Health and the corporate team at Novan, it will also assist EPI Health’s ongoing operations and expansion.
NOVN will take part in a key occasion:
Paula Brown Stafford, President and Chief Executive Officer of Novan, will take part in a panel discussion titled “Distraction or Destruction?: What’s New/Next in the Industry” on Thursday, December 8, 2022, at 11:00 AM ET at the Cantor Fitzgerald Medical & Aesthetic Dermatology, Ophthalmology & Medtech Conference, NOVN announced yesterday.
The panel discussion will feature breakthrough platform medicines from medical and cosmetic dermatological firms and provide attendees the chance to discuss impending milestones and projected data discoveries over the course of the next 12 to 18 months.
What will be covered by NOVN?
Participants, including NOVN, will talk about the unmet needs and difficulties in a variety of fields, including those for which there are no licensed medicines at the moment, as well as how their therapies fit into the existing paradigm of care to meet those requirements. In addition to the panel discussion, Novan (NOVN) will be ready to take part in face-to-face one-on-one meetings with eligible conference attendees from the investment community.