Sonnet Bio Therapeutics Holdings Inc. (SONN) had a bullish day on April 12, 2022, with gains spreading over both the regular and after-hours sessions. The regular session registered gains of 20.78% while the after-hours gains were 15.88%. Thus, after closing the regular trading at $0.4220, SONN rose to $0.4890 in the after hours. Consequently, SONN share prices gained 27.96% to $0.54 in pre-market trading today.
Seemingly, this bullishness can be attributed to the company’s latest SEC filing regarding its upcoming Annual Meeting of Stockholders but the market condition also appears to have a role.
SONN’s Annual Meeting
The company’s 2022 Annual Meeting of Stockholders is scheduled for Thursday, June 2, 2022, at 9:00 a.m. Eastern Time. As per the SEC filing, the matters up for a vote at the meeting include election of directors, a reverse stock split, amendment to Charter, compensation of names executives, and independent accounting firm selection.
The company is planning a reverse split of its common stock in order to regain compliance with Nasdaq’s minimum bid requirement. As per the Board’s discretion, if approved, a reverse split between 2-for-1 and 20-for-1 will be effected. As the reverse split will decrease the number of the issued common shares, SONN is also making an amendment for increasing its authorized shares from 125,000,000 to 250,000,000. Thus, the reverse split and amendment will increase the number of shares available for issuance in the future.
Additionally, the company’s additional 180-day extension for regaining compliance with Nasdaq will expire on October 3, 2022.
What’s going on in the Market?
Currently, the market is facing some serious instability and volatility. The Russian invasion of Ukraine, China’s audit issue with the U.S., global supply chain hurdles, the resurgence of Covid-19, a spike in interest rates amid soaring inflation, all are wreaking havoc in the market. As the market remains highly unstable, investors have been trying to snap up safer bets. In the past week, investors drove healthcare stocks up to new highs. Given the relatively safer options in healthcare stocks, even the slightest news tick investors to rally a stock up and gather some profits.
Even last week, the S&P 500 Healthcare Index closed high while the overall S&P 500 remained in the red.
Eager for some safe betting on healthcare stocks, investors found SONN’s annual meeting filing a reason for ticking the stock up. Thus, on Tuesday, the stock rallied big in both regular and after-hours trading.