NVN Liquidation, Inc.: going-concern / distress — Novan files Chapter 11, agrees to sell assets to Ligand for $15M

On July 17, 2023, prior to the filing of the Chapter 11 Case, the Company and Ligand (the “DIP Lender”), entered into a superpriority debtor-in-possession loan and security agreement (the “DIP Loan Agreement”), pursuant to which, and subject to the satisfaction of the applicable conditions precedent contained therein, including the entry by the Bankruptcy Court of the Interim DIP Order, the DIP Lender agreed to provide the Company with a secured superpriority debtor-in-possession credit facility in an aggregate principal amount of up to $15,000,000 (including the amount of the Bridge Loan, which will be rolled into the DIP Credit Facility after Bankruptcy Court approval of the DIP Credit Facility), subject to the terms and conditions set forth therein (the “DIP Credit Facility”).

On July 14, 2023 the Company entered into a loan and security agreement (the “Bridge Loan Agreement”) with Ligand in the principal amount of up to $3,000,000 (the “Bridge Loan”) .

On July 17, 2023, Novan, Inc. (the “Company”) filed a voluntary petition for relief under chapter 11 of title 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).