Sonnet BioTherapeutics Announces Exercise of Warrants for $3.4 Million in Gross Proceeds
June 20 2024 - 8:30AM
Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) (the “Company”
or “Sonnet”), a clinical-stage company developing targeted
immunotherapeutic drugs, announced today the entry into a
definitive agreement for the immediate exercise of certain
outstanding warrants to purchase up to an aggregate of 2,828,500
shares of common stock, issued by Sonnet in October 2023 (the
“Existing Warrants”), at a reduced exercise price of $1.20 per
share. The shares of common stock issuable upon exercise of the
Existing Warrants are registered pursuant to an effective
registration statement on Form S-1 (File No. 333-274581). The
closing of the offering is expected to occur on or about June 21,
2024, subject to satisfaction of customary closing conditions.
Ladenburg Thalmann & Co. Inc. is acting as
the exclusive placement agent for the offering.
In consideration for the immediate exercise of
the Existing Warrants for cash, Sonnet will issue new unregistered
warrants to purchase up to 5,657,000 shares of common stock (the
“New Warrants”). The New Warrants will have an exercise price of
$1.55 per share (priced at-the-market under the rules of the Nasdaq
Stock Market), will be exercisable upon issuance, and have a term
equal to five years from the date of issuance. In connection with
the transaction, Sonnet also (i) reduced the exercise price of the
Existing Warrants to purchase an aggregate of 2,824,000 shares of
common stock for all holders not participating in the transaction
to $1.20 per share for the remaining term of the Existing Warrants,
(ii) reduced the exercise price of certain outstanding warrants to
purchase up to an aggregate of 227,272 shares of common stock
issued by Sonnet in June 2023 (the “June Warrants”) to $1.55 per
share and (iii) extended the term of the June Warrants to the term
of the New Warrants.
The gross proceeds to Sonnet from the exercise
of the Existing Warrants are expected to be approximately $3.4
million, prior to deducting placement agent fees and offering
expenses. The Company intends to use the net proceeds for research
and development, including clinical trials, working capital, the
repayment of all or a portion of liabilities, and general corporate
purposes.
The New Warrants described above were offered in
a private placement pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended
(the "1933 Act"), and, along with the shares of common stock
issuable upon exercise, have not been registered under the 1933
Act, and may not be offered or sold in the United States absent
registration with the Securities and Exchange Commission ("SEC") or
an applicable exemption from such registration requirements. Sonnet
has agreed to file a registration statement with the SEC covering
the resale of the shares of common stock issuable upon exercise of
the New Warrants.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the securities in this
offering, nor shall there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such state or other
jurisdiction.
About Sonnet BioTherapeutics Holdings,
Inc.
Sonnet BioTherapeutics is an oncology-focused
biotechnology company with a proprietary platform for innovating
biologic drugs of single or bifunctional action. Known as FHAB
(Fully Human Albumin Binding), the technology utilizes a fully
human single chain antibody fragment (scFv) that binds to and
"hitch-hikes" on human serum albumin (HSA) for transport to target
tissues. Sonnet's FHAB was designed to specifically target tumor
and lymphatic tissue, with an improved therapeutic window for
optimizing the safety and efficacy of immune modulating biologic
drugs. FHAB is the foundation of a modular, plug-and-play construct
for potentiating a range of large molecule therapeutic classes,
including cytokines, peptides, antibodies, and vaccines.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 and Private Securities Litigation Reform Act, as
amended, including those relating to the outcome of the Company’s
clinical trials, the Company's cash runway, the Company's product
development, clinical and regulatory timelines, market opportunity,
competitive position, possible or assumed future results of
operations, business strategies, potential growth opportunities and
other statements that are predictive in nature. These
forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry and markets
in which we operate and management's current beliefs and
assumptions.
These statements may be identified by the use of
forward-looking expressions, including, but not limited to,
"expect," "anticipate," "intend," "plan," "believe," "estimate,"
"potential, "predict," "project," "should," "would" and similar
expressions and the negatives of those terms. These statements
relate to future events or our financial performance and involve
known and unknown risks, uncertainties, and other factors which may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include those set forth in the Company's filings with the
Securities and Exchange Commission. Prospective investors are
cautioned not to place undue reliance on such forward-looking
statements, which speak only as of the date of this press release.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Sonnet BioTherapeutics Investor Contact
Jack YauchSolebury Strategic
Communications862-754-1024jyauch@soleburystrat.com
Source: Sonnet BioTherapeutics
Holdings, Inc.Released June 20, 2024
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