Why Sonnet BioTherapeutics (SONN) Shares Are Falling

Sonnet BioTherapeutics Holdings, Inc. SONN shares are trading lower by 12.97% to $0.94 Wednesday morning after the company announced pricing of a $15 million underwritten public offering.

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Sonnet BioTherapeutics says the pricing of the underwritten public offering of 13,888,888 shares of common stock or common stock equivalents and investor warrants will be at an offering price of $1.08, for total gross proceeds of approximately $15.0 million, before underwriting discounts and commissions and offering expenses payable by Sonnet.

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The offering is expected to close on or about February 10, subject to the satisfaction or waiver of customary closing conditions.

Sonnet says the company anticipates using the net proceeds from the offering 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 $9.37 and a 52-week low of $0.91.