CIT Northbridge Credit Provides $27.78 Million Credit Facility to Applied Optoelectronics

NEW YORK, Dec. 5, 2022 /PRNewswire/ -- CIT, a division of First Citizens Bank, today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as agent on a $27.78 million credit facility for Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic networking products.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics, Inc. ("AOI") is a leading provider of fiber-optic access network products for the internet data center, cable broadband, fiber-to-the-home and telecommunications markets.

"The end-markets we serve are driven by bandwidth demand fueled by the growth of network-connected devices, video traffic, cloud computing and online social networking," said Stefan Murry, AOI's Chief Financial Officer. "The financing provided by CIT Northbridge Credit supports our continued focus on meeting the increased bandwidth demand through fiber-optic networking technology, which we believe has become essential in all of our key markets."

"AOI has a long history of relationships with reputable, credit-worthy customers across the end-markets it serves," said Neal Legan, who leads CIT Northbridge Credit. "We are pleased to have worked closely with AOI to provide a financing package that supports their business strategy and future customer expansion."

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions. A joint venture advised by CIT Asset Management, it provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles, and serves primarily as sole lender, agent, club participant or co-lender.

About CIT

CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States, continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. The company's commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 550 branches in 22 states, many in high-growth markets. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. Discover more at cit.com/firstcitizens.

About Applied Optoelectronics

Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all four of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com.

MEDIA RELATIONS:

Lexa Tutela
212-461-5305
Lexa.Tutela@firstcitizens.com

EPI Health, a Novan Company, Executes a $15.0 Million Financing Agreement

– Agreement provides immediate access to cash flow –

– EPI Health leveraging accounts receivables from commercial product sales to bolster working capital needs –

DURHAM, N.C., Dec. 02, 2022 (GLOBE NEWSWIRE) -- Novan, Inc. (“the Company” or “Novan”) (Nasdaq: NOVN), today announced that EPI Health, LLC, a fully consolidated subsidiary of the Company, has signed an accounts receivable-backed factoring agreement, to support its operations, with Bay View Funding, a wholly owned subsidiary of Heritage Bank of Commerce (Nasdaq: HTBK).

“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,” commented Paula Brown Stafford, President and Chief Executive Officer of Novan. “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 $15.0 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,” said Andrew Aquino, Executive Vice President of Bay View Funding. “We look forward to supporting EPI Health's operations and continued growth.”

About Novan

Novan, Inc. is a medical dermatology company primarily focused on researching, developing, and commercializing innovative therapeutic products for skin diseases. Our goal is to deliver safe and efficacious therapies to patients, including developing product candidates where there are unmet medical needs. We are developing SB206 (berdazimer gel, 10.3%) as a topical prescription gel for the treatment of viral skin infections, with current emphasis on molluscum contagiosum.

Novan completed the acquisition of EPI Health in early 2022. EPI Health equips the company with a robust commercial infrastructure across sales, marketing, and communications, as well as fully dedicated market access and pharmacy relation teams. Following the acquisition, the company promotes products for plaque psoriasis, rosacea, acne and dermatoses. Novan also has a pipeline of potential product candidates using our proprietary nitric oxide-based technology platform, NITRICIL™, to generate new treatments for multiple indications.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “target,” “anticipate,” “may,” “plan,” “potential,” “will,” “look forward to” and similar expressions, and are based on the Company’s current beliefs and expectations. These forward-looking statements include, but are not limited to, the ability to utilize the factoring agreement with Bay View to support the Company’s operations, the potential terms of and the potential timing for entering into an exclusive license agreement for the commercialization of Rhofade in Japan, and the availability of potential financing options. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the Company’s expectations, including, but not limited to, risks related to the acquisition of EPI Health; the Company’s ability to obtain additional funding or enter into strategic or other business relationships necessary or useful for the further development or commercialization of the Company’s product candidates and the operation of its business on terms that are acceptable to the Company or at all or if such relationships or transactions are unsuccessful or the Company is unable to realize the potential economic benefits of such relationships or transactions; risks and uncertainties associated with market conditions and the ability to complete the negotiation of an exclusive license agreement with respect to Rhofade on terms that are favorable to the Company or at all and that, even if an agreement is finalized, the Company will continue to need significant additional funding to continue its development and operating activities; ; and other risks and uncertainties described in the Company’s annual report filed with the Securities and Exchange Commission on Form 10-K for the twelve months ended December 31, 2021, and in the Company’s subsequent filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release, and the Company disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances after the date of such statements, except as may be required by law.

INVESTOR AND MEDIA CONTACT:

Jenene Thomas
JTC Team, LLC
833-475-8247
NOVN@jtcir.com