Sonnet BioTherapeutics Plunges 18.07% Amid CEO Passing, Private Placement

On July 3, 2025, Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) experienced a significant drop of 18.07% in pre-market trading, marking a notable decline in its stock price.

One of the key factors contributing to this decline was the company's recent announcement of a $2.0 million private placement of zero-interest convertible notes. This financial move, while aimed at raising capital, may have raised concerns among investors about the company's financial health and future prospects.

Additionally, the passing of Sonnet's founder and CEO, Pankaj Mohan, Ph.D., on July 3, 2025, added to the uncertainty surrounding the company. The loss of a key leader can often lead to investor anxiety, as it raises questions about the company's strategic direction and operational stability.

Despite these challenges, Sonnet has continued to make progress in its clinical trials and research. The company recently announced positive results from a safety review of SON-1010 in combination with trabectedin for certain sarcomas, demonstrating the potential of its therapeutic candidates. Furthermore, Sonnet's proprietary antibody drug conjugate (ADC) platform remains available for drug discovery partnerships, highlighting its ongoing commitment to innovation.