Novan’s EPI Health executes $15M financing agreement

Novan (NOVN) announced that EPI Health a fully consolidated subsidiary of the Company, has signed an accounts receivable-backed factoring agreement, to support its operations, with Bay View Funding, a wholly owned subsidiary of Heritage Bank of Commerce (HTBK). "This arrangement with Bay View is another source of non-dilutive funding that enables us to manage our working capital in a way that will help our consolidated business continue working toward our strategic objectives," commented Paula Brown Stafford, President and Chief Executive Officer of Novan. "In November, we signed a memorandum of understanding for the potential out-licensing of our Rhofade product in Japan, with any funding to be dependent on entering into a definitive agreement, and we are pleased to add this factoring agreement to our potential resources for the Company as we work to execute on our commercial growth initiatives." The new $15.0 million factoring facility will provide capital in an amount that is up to 70% of EPI Health’s gross eligible receivables.