Sonnet BioTherapeutics Raises $5.0 Million in Underwritten Public Offering

Sonnet BioTherapeutics Holdings, Inc. disclosed in an 8-K filing with the SEC on November 6, 2024, that it has successfully completed an underwritten public offering aimed at raising $5.0 million in gross proceeds. The company finalized an underwriting agreement with Chardan Capital Markets, LLC, for the sale of a total of 155,000 shares of its common stock, along with pre-funded warrants for 956,111 shares of common stock and accompanying warrants for 2,222,222 shares of common stock.

The offering, which closed on November 7, 2024, was executed at a combined public offering price of $4.50 per share of common stock and accompanying common warrant, and $4.4999 per pre-funded warrant and accompanying common warrant. Following the deduction of underwriting discounts and commissions as well as estimated offering expenses, Sonnet BioTherapeutics netted roughly $4.2 million from the offering.

According to the terms of the underwriting agreement, Sonnet has agreed to pay Chardan Capital Markets a commission of 7.0% of the total gross proceeds from the offering. Additionally, Sonnet is responsible for covering all reasonable out-of-pocket expenses incurred by the underwriter in relation to the offering, including legal fees of up to $125,000, and a non-accountable expense allowance equivalent to 1% of the offering’s gross proceeds.

The company intends to allocate the net proceeds from the offering toward research and development activities, particularly clinical trials, working capital, repayment of existing liabilities, and general corporate purposes. The pre-funded warrants included in the offering are exercisable following the closing date, while the common warrants are exercisable for a period of five years from the closing date.

Sonnet BioTherapeutics’ securities were offered to the public through the company’s registration statement on Form S-1, initially filed with the SEC on October 28, 2024, and declared effective on November 6, 2024.

Furthermore, the underwriting agreement includes standard representations, warranties, and agreements by Sonnet, along with conditions for closing, indemnification commitments, and termination provisions. Notably, the agreement stipulates a 60-day lock-up period where the company and its key personnel are restricted from selling or disposing of any shares of common stock, subject to limited exceptions.

The company also released a press release on November 6, 2024, disclosing the details of the pricing and terms of the offering. This announcement provides further insights into Sonnet BioTherapeutics’ strategic moves in capitalizing on the funds raised through the public offering.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sonnet BioTherapeutics’s 8K filing here.

About Sonnet BioTherapeutics

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Sonnet BioTherapeutics Holdings, Inc, a biotechnology company, owns a platform for biologic medicines of single or bifunctional action. The company develops fully human albumin binding technology, which utilizes human single chain antibodies fragment that binds to and hitch-hikes on human serum albumin for transport to target tissues.

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