Sonnet BioTherapeutics Holdings Inc. SONN stock experienced a drop of 5.54% on Thursday, followed by a remarkable recovery of 14.29% in after-hours trading.
What Happened: Sonnet BioTherapeutics’ stock fell by 5% during regular trading hours on Thursday. The drop was attributed to concerns about the company’s continued listing on the NASDAQ exchange. The stock closed at $3.92.
However, the stock made a recovery in after-hours trading, surging by 14% to $4.48. This rebound came after an 18.07% plunge earlier in the day, which was attributed to the passing of the company’s CEO, Pankaj Mohan and a private placement of zero-interest convertible notes, worth $2 million.
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Failing to meet the minimum requirement of $2.5 million in stockholders’ equity and alternative thresholds, NASDAQ issued a non-compliance notice to SONN under Rule 5550(b)(1).
Why It Matters: The fluctuation in Sonnet BioTherapeutics’ stock value is not an isolated incident. The healthcare sector has seen several stocks experience significant movements. 12 healthcare stocks, including Beta Bionics BBNX and Cognition Therapeutics CGTX, also experienced notable changes in their stock values on Thursday.
Notably, Sonnet BioTherapeutics’ stock had previously experienced a significant decline in September 2024, following a reverse stock split announcement. The company’s stock fell by 19.9% after the announcement.
Price Action: With a market cap of $12.41 million, SONN closed at $3.92 on July 3, down 5.54% from the previous close of $4.15. Despite the dip, the stock surged 14.29% after hours to $4.48, suggesting increased investor interest. The rebound after the dip indicates the volatility of shares on Wednesday.
Benzinga’s Edge Stock Rankings indicate Sonnet BioTherapeutics Holdings has a Momentum in the 94th percentile, here is how the stock fares on other parameters.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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