NOVAN, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant (form 8-K)

Item 1.01. Entry into a Material Definition Agreement.

On January 18, 2021, Novan, Inc. (the "Company") entered into a Lease dated as of January 18, 2021 (the "Lease"), by and between the Company and Copper II 2020, LLC ("Landlord"), as subsequently amended, pursuant to which the Company leases its corporate headquarters at 4020 Stirrup Creek Drive, Durham, North Carolina 27703 (the "Premises"). On November 23, 2021, the Company entered into a second amendment to the Lease (the "Amendment"), whereby the Company has expanded the Premises to lease approximately 3,642 additional rentable square feet (the "Expansion Premises"). Pursuant to the terms of the Amendment, the annual base rent per rentable square foot for the Expansion Premises will be $30.50 with rent commencing nine (9) months after the Amendment execution date. Beginning November 1, 2022, and annually thereafter, the annual base rent per rentable square foot will be increased by 3%. The Company continues to be obligated to pay its pro rata portion of taxes and operating expenses for the building as well as maintenance and insurance for the Premises, including the Expansion Premises, all as provided for in the Lease.

Landlord has agreed to provide the Company with an Expansion Premises tenant improvement allowance in an amount not to exceed $115 per rentable square foot in the Expansion Premises. Pursuant to the terms of the Amendment, the Company delivered to Landlord a letter of credit amendment that evidenced an additional amount of $111,081 being subject to the current letter of credit, in lieu of an additional cash security deposit, as collateral for the full performance by the Company of all of its obligations under the Lease.

All other material terms, conditions, rights and obligations of the Lease remain effective and apply to the Expansion Premises. The term of the Lease, including the Premises and Expansion Premises, expires on January 31, 2032.

The foregoing summary of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which will be filed as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information contained in Item 1.01 above is hereby incorporated by reference into this Item 2.03.

© Edgar Online, source Glimpses