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Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) announced Thursday that it has entered into an employment agreement with Raghu Rao, the company’s interim Chief Executive Officer. The agreement, dated July 31, 2025, sets Mr. Rao’s annual gross base salary at $400,000.
According to a statement in the company’s SEC filing, Mr. Rao will be eligible for a bonus equal to 5.0% of gross revenue received by the company from a strategic transaction, with the exception of any proposed transaction with Rorschach I LLC and Hyperliquid Strategies Inc. The agreement also allows for additional cash or equity-based bonuses at the discretion of the board of directors, based on achievement or progress toward company goals.
If Mr. Rao is terminated without cause, he will be entitled to receive his base salary for six months, payable in accordance with the company’s payroll practices and subject to required withholdings. In the event of resignation for any reason, Mr. Rao will not receive severance benefits, but will be paid any accrued obligations under the company’s standard payroll policies.
On the same day, the board of directors approved a discretionary bonus of $100,000 to Mr. Rao.
Sonnet BioTherapeutics Holdings, Inc. is incorporated in Delaware and is listed on the Nasdaq Capital Market. The information in this article is based on a press release statement contained in the company’s Form 8-K filing with the Securities and Exchange Commission.
In other recent news, Sonnet BioTherapeutics has announced a significant merger with a new entity formed by Atlas Merchant Capital and other partners to create Hyperliquid Strategies Inc. This business combination will transform Sonnet into a cryptocurrency treasury, holding $888 million in HYPE tokens and cash. The new entity is expected to possess approximately 12.6 million HYPE tokens valued at $583 million, along with gross cash of at least $305 million. Additionally, Sonnet completed a $2 million private placement of convertible notes, which included the issuance of warrants for 865,052 shares of common stock, generating approximately $50,000 in additional proceeds. In regulatory news, Sonnet received a delisting notice from The Nasdaq Stock Market due to non-compliance with the minimum stockholders’ equity requirement of $2.5 million, as the company reported equity of $662,262 as of March 31, 2025. Sonnet also does not meet alternative compliance standards, such as a market value of listed securities of at least $35 million or net income of $500,000 from continuing operations. These developments mark a period of significant transformation and challenge for Sonnet BioTherapeutics.
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