Sonnet BioTherapeutics Stock Plunges 15.66% Amid Capital Raise

On July 3, 2025, Sonnet's stock experienced a significant drop of 15.66% in pre-market trading, marking a notable decline in its share price.

Sonnet BioTherapeutics recently completed a $2 million convertible notes sale, which included the issuance of 865,000 warrants at $1.156 per warrant. Additionally, there is a potential for an additional 3.46 million warrants at $0.25 to be issued in the future. This financial maneuver is part of the company's strategy to raise capital and support its ongoing operations and research initiatives.

In a recent corporate action, Sonnet BioTherapeutics performed a 1-for-8 reverse stock split. This means that shareholders will now hold one share of SONN for every eight shares they previously held. The reverse split is a common strategy used by companies to increase their stock price and meet listing requirements, which can also impact investor sentiment and trading dynamics.

Sonnet BioTherapeutics is a biotechnology company focused on developing biologic medicines. The company's platform is designed to create single or multi-specific biologic medicines, which have the potential to treat a variety of diseases. The company's innovative approach to drug development has garnered attention in the biotech sector, and its progress in clinical trials and research is closely monitored by investors.

Recent news highlights the potential of Sonnet Bio's cancer drug, which has shown a 44% tumor shrinkage in clinical trials. This development has sparked interest in the company's ability to deliver significant returns, given its current market capitalization. The positive results from the cancer drug trials have contributed to the optimism surrounding Sonnet BioTherapeutics' future prospects.