Why Sonnet BioTherapeutics (SONN) Stock Is Getting Hammered
Portfolio Pulse from Henry Khederian
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) shares are trading lower by 27.6% after the company announced the pricing of a public offering involving 2,843,750 shares of common stock or pre-funded warrants, along with investor warrants allowing the purchase of up to 5,687,500 shares of common stock. The combined offering price is $1.60 per share, totaling approximately $4.55 million in gross proceeds before expenses. The funds raised will be utilized for research and development, including clinical trials, as well as general corporate purposes.
October 25, 2023 | 3:00 pm
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NEGATIVE IMPACT
Sonnet BioTherapeutics' stock price has dropped significantly following the announcement of a public offering. The funds raised from the offering will be used for research and development, and general corporate purposes.
The announcement of a public offering often leads to a decrease in the stock price due to the dilution of shares. In this case, the offering price is also lower than the current trading price, which can further drive down the stock price. However, the funds raised will be used for R&D and corporate purposes, which could potentially lead to long-term growth.
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IMPORTANCE 80
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