Sonnet BioTherapeutics Holdings Inc. (NASDAQ: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 (NASDAQ:BBNX) and Cognition Therapeutics (NASDAQ: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.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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