Societal CDMO stock dropped more than 33% at the open after the firm announced a discounted and dilutive equity raise for gross proceeds of $8.3 million.
The contract development and manufacturing organization (CDMO) announced an offering of 20,750,000 shares at $0.40 per share, a steep discount to Wednesday’s share price of about $0.60.
The stock offering is expected to close on or about August 28, 2023, subject to customary closing conditions.
Societal CDMO shares were down 33.4% at US$41 shortly after the market opened on Thursday.
The bi-coastal company provides therapeutic development, end-to-end regulatory support, clinical and commercial manufacturing, aseptic fill/finish, lyophilization, packaging and logistics services to the global pharmaceutical market.
Its facilities total 145,000 square feet, in Gainesville, Georgia, and San Diego, California.
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