Shares of the Sonnet BioTherapeutics Holdings, Inc. (SONN) stock had been on a skywalk on August 19, 2021, in the pre-market trading session. SONN stock price saw a whopping surge of 132.18% to reach $1.73 a share as of this writing. At one moment, SONN stock price surpassed 200% in the pre-market. The stock was gloomy in the previous trading session and went down by 11.33% at closing. Let’s understand the reason behind this bull.
What’s Happening?
Sonnet BioTherapeutics Holdings, Inc is a biotech stock, based in Princeton, New Jersey that develops medicines of single or bispecific action. There is no SONN stock-specific news, no press release, or any specific announcement by the stock itself to justify the bullish sentiment. No analysts’ upgrades or increased targeted per share price of the SONN stock has been in the recent news. It seems that the SONN stock is hot among investors on the social media platforms like Reddit, Twitter, StockTwits, etc. Thus, we can say that the short squeeze phenomenon is bringing the SONN stock price so high today. At this point, it is better to discuss some recent events of Sonnet BioTherapeutics.
SONN Stock Third Quarter Fiscal 2021 Financial Results:
SONN stock on August 16, 2021, released third-quarter fiscal 2021 financial results the highlights of which are given below.
- SONN stock spent $3.9 million in research and development expenses in the third quarter ended June 30, 2021. This compares to the $2.5 million in research and development expenses in the same period of the previous year. The increase is attributable to the development of the cell line for IL12-FHAB and IL12-FHAB-IL15 and the acquisition of Relief. The increased payroll and share-based compensation expenses also contributed to this increase.
- Sonnet stock spent $2.4 million in general and administrative expenses in Q2,2021, $0.1 million lower than Q2,2020. A $0.9 million decrease in professional, as well as transaction fees related to the closing of the merger, is the main reason for decreased G&A expenses.
- Sonnet stock reported $6.0 million cash in hand by the end of the third quarter of fiscal 2021.
Recent Development of SONN stock:
- Sonnet stock signed a license agreement with New Life Therapeutics in May 2021 for the development and commercialization of SON-080. SON-080 treats and prevents diabetic peripheral neuropathy.
- The U.S Patent No. 11,028,166 entitled “Albumin Domain Fusion Proteins” which had been issued in June 2021 covered Sonnet’s FH AB technology.
- SONN stock issued an aggregate of 7,454,238 shares of its common stock under the At-the-Market Sales Agreement. The resulted gross proceeds were $15,874,999.
Wrap Up:
The short squeeze phenomenon has significantly increased the Sonnet stock price, compared to the previous closing. No one knows how long this trend will continue as the stock market is unpredictable. In the past 12 months, this biotech stock has lost 71.23%.
