PRINCETON, NJ - Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: NASDAQ:SONN), a clinical-stage biotech firm, announced today the pricing of its public offering. The company is offering 1,111,111 shares of common stock or equivalent pre-funded warrants, alongside common warrants to purchase up to 2,222,222 shares. The combined price for each share or warrant is $4.50, totaling an expected gross of approximately $5 million before fees and expenses.
The common warrants, exercisable for five years from issuance, allow purchase of two shares of common stock at $4.50 each. This offering is expected to close on November 7, 2024, with Chardan acting as the underwriter.
Sonnet intends to utilize the net proceeds for research and development, clinical trials, working capital, debt repayment, and general corporate purposes. The offering is pursuant to an effective registration statement on Form S-1 with the SEC.
This press release does not signify an offer to sell these securities in jurisdictions where such actions would be unlawful. The preliminary prospectus is available on the SEC's website, and copies of the final prospectus can be obtained from Chardan Capital Markets when available.
Sonnet's proprietary FHAB technology is at the core of its product development, aiming to enhance the delivery and efficacy of biologic drugs for oncology treatment.
The company's forward-looking statements indicate plans for the offering's proceeds, clinical trials, and product development, but these are subject to market conditions and customary closing conditions for the offering.
This news article is based on a press release statement.
In other recent news, Sonnet BioTherapeutics has made significant strides in their ongoing endeavors. The clinical-stage biotech firm has secured a U.S. Patent for its novel immunotherapeutic proteins, SON-1411 and SON-1400, which are anticipated to advance cancer treatment options. In addition, Sonnet has regained compliance with Nasdaq's minimum bid price rule, ensuring its continued listing on the Nasdaq Capital Market.
The company has also entered into a licensing agreement with Alkem Laboratories for the development and commercialization of SON-080 in India, addressing the need for neuropathy treatments. Sonnet has received preliminary approval to sell New Jersey State net operating losses and research and development tax credits, potentially raising up to $0.795 million.
Sonnet has introduced the CEO Corner, a new communication platform aimed at providing shareholders with in-depth information on the company's progress and future plans. Significant strides have been made in its clinical trials, reporting positive results from its Phase 1b clinical trial of SON-080, and advancing SON-1210, an immunotherapeutic for metastatic pancreatic cancer, in collaboration with the Sarcoma Oncology Center. The company has also enacted a one-for-eight reverse stock split and entered an agreement for the immediate exercise of warrants allowing the purchase of up to 2,828,500 shares of common stock at a reduced price. These are the recent developments in Sonnet's ongoing efforts.
InvestingPro Insights
Sonnet BioTherapeutics' recent public offering comes at a challenging time for the company, as revealed by several key metrics from InvestingPro. The company's market capitalization stands at a modest $4.84 million, reflecting its current position in the biotech sector.
InvestingPro data shows that Sonnet's revenue for the last twelve months as of Q3 2024 was just $0.06 million, with a concerning revenue growth rate of -67.76%. This aligns with an InvestingPro Tip indicating that the company is not profitable over the last twelve months, which is not uncommon for clinical-stage biotech firms but underscores the importance of the recent capital raise.
Another InvestingPro Tip notes that Sonnet holds more cash than debt on its balance sheet. This positive aspect of the company's financial health could be further bolstered by the proceeds from the public offering, potentially providing a runway for its research and development activities.
The stock's recent performance has been challenging, with InvestingPro data showing a 6-month price total return of -71.71%. This context makes the pricing of the public offering at $4.50 per share particularly significant, as it represents an important source of funding for the company's ongoing operations and clinical trials.
Investors considering Sonnet's stock should note that InvestingPro offers 11 additional tips that could provide further insights into the company's financial position and market performance. These tips, along with real-time metrics, can be valuable for understanding the full picture of Sonnet's investment potential in the volatile biotech sector.
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