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.