Why Sonnet BioTherapeutics (SONN) Stock Is Nosediving

Sonnet BioTherapeutics Holdings, Inc. SONN shares are trading lower by 26.18% to $0.50 Wednesday morning after announcing a $2.25 million registered direct offering of 5 million at 45 cents per share.

What Else?

Concurrently, Sonnet will issue warrants allowing the investor to purchase up to 5 million additional shares at an exercise price of 67.49 cents per share. The offering is expected to close on or about June 30, subject to customary conditions.

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Chardan is the exclusive placement agent for the offering. The gross proceeds, approximately $2.25 million, will be used for research and development, including clinical trials, working capital and general corporate purposes.

According to data from Benzinga Pro, SONN has a 52-week high of $4.48 and a 52-week low of $0.20.