Why did Sonnet Biotherapeutics Holdings Inc (SONN) stock rally today?

Sonnet Biotherapeutics Holdings Inc (SONN) stock rallied in the Pre-Market today on October 4, 2021. SONN stock price saw a push of 7.69% to reach $0.70 a share at the time of this writing. The stock was also green in the previous trade and went up by 7.1% bringing per share price $0.649 at closing. Let’s understand the reason behind this bull.

What’s Happening?

There is no recent or press release by Sonnet Biotherapeutics today not even in the previous week to justify the bullish sentiment. No analyst has upgraded or increased the targeted per share price of the SONN stock in recent times. The stock is continuing the rising momentum as it is hot among investors in the social media community platforms like Reddit, StockTwits and Twitter, etc. Investors are finding it to take advantage of the low per-share price of SONN stock to make high gains in the future. In order to make you aware, let’s discuss some recent events of this stock.

SONN stock completed discovery phase for SON-1410:

SONN stock on August 30, 2021, announced the selection of a novel development candidate that represents the second bispecific compound of Sonnet integrating Interleukin 12 (IL-12) with SONN’s Fully Human Albumin Binding platform. The company selected the candidate after it had completed the comparative studies in the mouse melanoma model.

Public offering by SONN stock:

SONN stock on August 19, 2021, announced the underwritten public offering of 35,294,117 shares of common stock as well as investor warrants to purchase an aggregate of 35,294,117 shares of common stock. The offering price of each share and investors warrant combined was $0.85. The gross proceeds resulted from this offering were nearly $30 million before deducting underwriting discounts and other offering-related expenses. Moreover, the company granted the 30-day option to underwriters to purchase additional 5,294,117shares of its common stock. The offering closed on August 24, 2021.

Financial View of Sonnet stock:

In the second quarter of 2021, research and development expenses of the Sonnet stock increased to $3.9 million from $2.5 million in the second quarter of 2020. On the other hand, general and administrative expenses were reduced by $0.1 million in Q2,2021 from Q2,2020. The decrease is attributable to lower professional fees and transactional-related fees associated with the closing of the merger.

Wrap Up:

Investors are responding positively to the SONN stock despite no recent announcement by the company. Investors are optimistic that this stock will soon cross $1.00 per share. Sonnet has gained 3.17% in the last 30 days however it lost almost 76% year to date.