Novan, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on July 17, 2023. The debtor seeks the Court?s approval for the sale of substantially all its assets to Ligand Pharmaceuticals, the stalking horse bidder, for a purchase price of $15 million in cash. To qualify as a qualified bidder, interested parties should submit their bids by August 28, 2023, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $0.1 million more than the initial purchase price. The debtor has scheduled an auction on August 31, 2023. At the auction, the subsequent bids would be in increments of $0.1 million.

The stalking horse bidder would be entitled to a break-up fee of $0.45 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for September 8, 2023.