Why Sonnet BioTherapeutics Stock (SONN) Is Getting Obliterated

Sonnet BioTherapeutics Holdings, Inc. SONN shares are trading lower by 24% to $0.21 Thursay afternoon after the company announced a 1-for-22 reverse stock split.

The company says the reverse stock split is intended to increase the per share trading price of Sonnet's common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market (Rule 5550(a)(2)).

Additionally, the reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 38.5 million to approximately 1.8 million.

See Also: What In The World Is Going On With AMC Shares?

According to data from Benzinga Pro, SONN has a 52-week high of $4.20 and a 52-week low of $0.19.