Sonnet BioTherapeutics Stock Slumps After $30M Equity Raise

Sonnet BioTherapeutics Stock Slumps After $30M Equity Raise
  • Sonnet BioTherapeutics Holdings Inc SONN priced the underwritten public offering of 35.3 million shares (including pre-funded warrants) and warrants to purchase up to 35.3 million shares. 
  • Each share of common stock (or pre-funded warrant) has a combined price of $0.85, raising approximately $30.0 million gross proceeds.
  • The offer price represents a massive discount of 57.50% from the last close price of $2 on Thursday.
  • Related: Thursday, SONN stock closed 167% higher after discussions on social media platforms citing the Company as a short squeeze candidate.
  • The investor warrants have an exercise price of $0.85 per share. The offering will close by August 24.
  • BTIG is acting as the sole book-running manager in connection with the offering, and Chardan is acting as the lead manager.
  • Underwriters have an option to purchase up to 5.3 million additional shares or investor warrants to purchase up to 5.3 million additional shares.
  • Sonnet will use proceeds for R&D, including clinical trials, working capital, and general corporate purposes.
  • Price Action: SONN shares are down 48.1% at $0.63 during the market session on the last check Friday.

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