EPI Health, a fully consolidated subsidiary of Novan, signed an accounts receivable-backed factoring agreement to support its operations with Bay View Funding, a wholly-owned subsidiary of Heritage Bank of Commerce.
“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,” Paula Brown Stafford, president and CEO of Novan, said. “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 million factoring facility will provide capital in an amount that is up to 70% of EPI Health’s gross eligible receivables.
“We are excited to work with the commercial team at EPI Health and the corporate team at Novan. We are pleased to assist EPI Health by providing immediate cash flow associated with their high-quality customer base and continued growth prospects,” Andrew Aquino, executive vice president of Bay View Funding, said. “We look forward to supporting EPI Health’s operations and continued growth.”
