Why Sonnet BioTherapeutics Stock (SONN) Is Getting Obliterated
Portfolio Pulse from Henry Khederian
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) announced a 1-for-22 reverse stock split, causing its shares to drop by 24% to $0.21. The reverse split is intended to increase the per share trading price to meet the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. The split will also reduce the number of shares of common stock from approximately 38.5 million to approximately 1.8 million.
August 31, 2023 | 5:24 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Sonnet BioTherapeutics' shares dropped significantly following the announcement of a 1-for-22 reverse stock split. The split is aimed at increasing the per share trading price to meet Nasdaq's listing requirements.
The announcement of a reverse stock split typically leads to a decrease in the company's share price as it often signals financial distress. In this case, Sonnet BioTherapeutics is trying to meet the Nasdaq's minimum bid price requirement for continued listing, which indicates that the company's shares have been trading below the required price. This could negatively impact investor sentiment, leading to a drop in the share price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100