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Novan spinoff Know Bio raises $2.6M from 43 investors

May, 15 2017, 5:50 AM

A Durham, North Carolina-based biotechnology company raised more than $2.6 million in a private equity offering, according to a filing Friday with the Securities and Exchange Commission.

Know Bio LLC raised the money from 43 investors, according to the filing.

The company was created in late 2015 by separating all non-dermatological assets from Novan Inc.

The company’s subsidiary is Novoclem Therapeutics. Novoclem is developing inhalable treatments for antibiotic-resistant pathogens present in cystic fibrosis and other respiratory disease patients.

The company is developing nitric oxide technology to treat cystic fibrosis. According to the company, the technology is effective against both antibiotic-resistant pseudomonas aeruginosa, which is present in the lungs of approximately 60 percent of patients with cystic fibrosis, and mycobacterium abscessus, a growing threat to CF patients.

The company anticipates submitting an investigational new drug application and initiating human clinical trials in early 2018.

Serial entrepreneur Neal Hunter is the chairman and managing director of Know Bio. He was co-founder of Cree Inc. and served multiple roles at Cree, including as the CEO and chairman from 1994 to 2001 and then chairman until 2005.

The company claimed a Rule 506 (b) exemption for the filing. Companies relying on the Rule 506 exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.

Note: This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism