Sonic Foundry Announces Closing of $4.3 Million Public Offering

Rhea-AI Summary

Sonic Foundry Inc. (Nasdaq: SOFO) successfully closed its public offering, issuing 1,700,000 shares of common stock at $2.55 per share, raising approximately $4.3 million in gross proceeds. The offering was managed by Maxim Group LLC and conducted under an effective shelf registration statement with the SEC. Sonic Foundry, a leader in video capture and streaming solutions, serves educational institutions and governments globally, emphasizing its robust market position. The details of the offering and prospectus are available through Maxim Group LLC.

Positive

• Raised approximately $4.3 million in gross proceeds.
• Successful completion of an underwritten public offering, enhancing capital for potential growth.

Negative

• Dilution risk for existing shareholders due to the new share issuance.

MADISON, Wis., April 19, 2022 (GLOBE NEWSWIRE) -- Sonic Foundry Inc. (Nasdaq: SOFO), the trusted leader in video capture, management and streaming solutions as well as virtual and hybrid events, today announced the closing of its previously announced underwritten public offering of 1,700,000 shares of its common stock at a public offering price of $2.55 per share. Gross proceeds before deducting underwriting discounts and commissions and other offering expenses are approximately $4.3 million.

Maxim Group LLC acted as the sole book-running manager for the public offering.

The public offering was made pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on February 17, 2022 and declared effective on March 1, 2022. A final prospectus supplement describing the terms of the public offering has been filed with the SEC and will form a part of the effective registration statement. Copies of the final prospectus supplement and accompanying prospectus relating to the public offering may be obtained by contacting Maxim Group LLC, 300 Park Avenue, New York, NY 10022, or by telephone at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Sonic Foundry®, Inc.

Sonic Foundry (NASDAQ: SOFO) is the global leader for video capture, management and streaming solutions as well as virtual and hybrid events. Trusted by thousands of educational institutions, corporations, health organizations and government entities in over 65 countries, Sonic Foundry’s solutions include Mediasite®, Mediasite Connect, VidableTM and Global Learning ExchangeTM.

Learn more at www.sonicfoundry.com.

© 2022 Sonic Foundry, Inc. Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their respective owners.

Safe Harbor for Forward-Looking Statements

This news release contains forward-looking statements about the products and services of Sonic Foundry within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements include statements about our products and services, our customer base, strategic investments, new partnerships, our future operating results and any statements we make about the company’s future. These types of statements address matters that are subject to many risks and uncertainties. Actual results could differ materially from the forward-looking guidance we provide. Any forward-looking statements should be considered in context of the risk factors disclosed in our periodic forms 10Q, 10K and other filings with the SEC. These filings can be accessed on-line at www.sec.gov and other websites or can be obtained from the company’s investor relations department. All of the information and disclosures we make in this news release regarding our business, including any forward-looking guidance, are as of the date given and we assume no obligation to update or change this information, regardless of subsequent events.

FAQ

What is the size of Sonic Foundry's public offering?

Sonic Foundry's public offering consisted of 1,700,000 shares at a price of $2.55 per share.

How much money did Sonic Foundry raise from the stock offering?

The offering raised approximately $4.3 million in gross proceeds before expenses.

Who managed Sonic Foundry's public offering?

Maxim Group LLC acted as the sole book-running manager for the public offering.

What risks are associated with Sonic Foundry's public offering?

The main risk includes potential dilution for existing shareholders due to the increase in the number of shares.

When was the public offering filed with the SEC?

The public offering was filed with the SEC on February 17, 2022.