On Wednesday, Sonnet BioTherapeutics Holdings, Inc. (SONN)—a biopharmaceutical company—announced a 1-for-8 reverse stock split of its outstanding common stock, effective from the start of trading on Monday, September 30, 2024.
This reverse stock split will reduce the number of common stock shares from approximately 5.2 million to around 650,300.
The company's board of directors approved the 1-for-8 ratio on September 23, 2024, following shareholder approval by a majority vote. Shareholders had granted the board the authority to select a ratio ranging from 1-for-2 to 1-for-12.
The primary intent of the reverse stock split is to elevate the per-share trading price of Sonnet's common stock to meet the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market (Rule 5550(a)(2)).
Post-split, Sonnet's common stock will remain listed on The Nasdaq Capital Market under the ticker symbol 'SONN' but will adopt a new CUSIP number: 83548R402.
As a result, every eight existing pre-split shares will consolidate into one post-split share.
The reverse split will also affect common stock issued upon exercising Sonnet's outstanding warrants and stock options, with exercise prices adjusted proportionally, as well as those under the company's equity incentive plans.
