Novan takes steps to reduce real estate footprint
Novan announced that the company has executed a non-binding letter of intent, or LOI, with a third party on its facility at 4105 Hopson Road in Morrisville, NC. The primary goal of the LOI is to negotiate an agreement that obtains the release of Novan from its current multi-year obligation. This agreement has a 60-day period of exclusivity for negotiations. The company's objective is to reach a binding agreement no later than the end of Q3. Embedded within the agreement is an allowance for the company to simultaneously sublease a portion of the Hopson Road facility and remain there for the foreseeable future, which is intended to minimize business disruptions. An executed agreement is targeted to reduce Novan's real estate presence by approximately 70%.