Societal CDMO Announces Closing of $8.3 Million Public Offering of Common Stock

SAN DIEGO and GAINESVILLE, Ga., Aug. 29, 2023 (GLOBE NEWSWIRE) -- Societal CDMO, Inc. (“Societal”; NASDAQ: SCTL), a contract development and manufacturing organization (“CDMO”) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, today announced that the company closed its previously announced underwritten public offering of 20,750,000 shares of its common stock (or common stock equivalents) at a public offering price of $0.40 per share of common stock (or common stock equivalent) on Monday, August 28, 2023. The gross proceeds of the offering were $8.3 million, before underwriting discounts and commissions and offering expenses. Societal intends to use the net proceeds from the offering for general corporate purposes.

“We are pleased to have closed this financing as it provides Societal with additional funding to support the continued execution of our growth objectives. This comes at a time in which we are generating ongoing momentum in pursuing and winning new business, both from the establishment of entirely new customer relationships and the expansion of existing customer projects, all while aggressively managing our expenditures during an industry slowdown that is making it challenging for drug innovators to secure funding for their programs,” said David Enloe, chief executive officer of Societal. “Additionally, we believe that our overall position has been further strengthened by the recent appointment of Matt Arens to our board of directors. Matt is a highly regarded life science industry investor with a track record of supporting micro-cap, small-cap, and mid-cap health care companies that are well positioned for growth. We welcome him to the board and look forward to the contributions he will make to advancing our achievement of key corporate objectives.”

Craig-Hallum Capital Group LLC acted as the sole managing underwriter for the offering.

The securities were offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021, and declared effective by the SEC on April 20, 2021. The offering was made only by means of the prospectus and prospectus supplement that forms a part of the registration statement. Copies of the final prospectus supplement and accompanying prospectus relating to, and describing the terms of, the offering, have been filed with the SEC and are available on the SEC's website at www.sec.gov. Copies may also be obtained by contacting Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South 9th Street, Suite 350, Minneapolis, Minnesota 55402, by telephone at [phone], or by email at [e-mail].