PRINCETON, NJ – Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN), a biopharmaceutical company, announced the approval of significant proposals at its annual meeting of stockholders held on Thursday. The shareholders voted on several critical items including the election of directors, a potential reverse stock split, and the ratification of the company’s independent auditor.
The company, headquartered in Princeton, New Jersey, saw all six nominated directors elected to its board. The directors, including Pankaj Mohan, Ph.D., Nailesh Bhatt, Albert Dyrness, Donald Griffith, Raghu Rao, and Lori McNeill, will serve until their successors are elected next year.
In addition, stockholders approved a proposal to comply with Nasdaq Listing Rule 5635(d), authorizing the issuance of more than 20% of the company's outstanding common stock under the ChEF Purchase Agreement with Chardan Capital Markets LLC. This move could provide the company with additional capital to fund its operations.
A critical proposal that also received approval was the amendment to the company's Certificate of Incorporation to effect a reverse stock split of its common stock. The approved ratio ranges from one-for-two to one-for-twelve, to be enacted at the board's discretion within the next year. This reverse stock split aims to increase the market price per share, potentially improving the marketability and liquidity of the company’s stock.
Lastly, the shareholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2024. The approval of this proposal ensures continuity in the company’s financial auditing process.
The approval of these proposals, particularly the reverse stock split, indicates shareholder support for the company's strategic initiatives to strengthen its financial position and stock market standing. The decisions were made based on the votes of over 5 million shares represented at the meeting.
In other recent news, Sonnet BioTherapeutics Holdings, Inc. has been granted an extension until October 15, 2024, to execute a reverse stock split and meet the Nasdaq's minimum bid price requirement. The company has also made significant progress in its clinical trials and financial endeavors.
Sonnet has advanced SON-1210, an immunotherapeutic for metastatic pancreatic cancer, in collaboration with the Sarcoma Oncology Center. This development is set to facilitate a Phase 1/2a clinical trial, combining SON-1210 with chemotherapy agents.
Additionally, Sonnet reported positive results from its Phase 1b clinical trial of SON-080, a treatment candidate for chemotherapy-induced peripheral neuropathy. The treatment showed promise in improving related symptoms, setting the stage for a Phase 2 study for diabetic peripheral neuropathy.
On the financial front, Sonnet has entered an agreement for the immediate exercise of warrants issued in October 2023, allowing the purchase of up to 2,828,500 shares of common stock at a reduced price. The company also plans to issue new unregistered warrants for the purchase of up to 5,657,000 shares.
The anticipated gross proceeds from these actions are projected to be around $3.4 million, which Sonnet intends to allocate towards research and development efforts.
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