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Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN), currently valued at $3.67 million in market capitalization, announced that it has received a notice from The Nasdaq Stock Market LLC regarding non-compliance with the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market. According to InvestingPro data, the company maintains a positive cash position relative to debt, though its overall financial health score indicates weakness. According to the Nasdaq Listing Rule 5550(b)(1), companies must maintain a minimum stockholders’ equity of $2.5 million. Sonnet reported equity of $662,262 as of March 31, 2025, falling short of this requirement. InvestingPro analysis reveals concerning metrics, including negative EBITDA of -$13.77 million and weak gross profit margins. Subscribers can access 10+ additional financial health indicators.
The company also does not meet alternative compliance standards, which include a market value of listed securities of at least $35 million or net income of $500,000 from continuing operations in the most recent fiscal year or in two of the last three fiscal years.
Despite the notice, Sonnet’s stock continues to trade on The Nasdaq Capital Market under the symbol "SONN." Nasdaq has given Sonnet 45 days, until July 14, 2025, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the notice date to meet the requirements. The stock has experienced significant pressure, with a -90.68% return over the past year and currently trades near its 52-week low of $1.08.
Sonnet is evaluating options to regain compliance and plans to submit its plan to Nasdaq within the given timeframe. There is no assurance that the plan will be accepted or that compliance will be regained. If the plan is not accepted or compliance is not achieved within the extension period, Sonnet’s stock could be subject to delisting. Nasdaq rules allow the company to appeal any delisting determination, which would stay any suspension or delisting action pending the conclusion of the hearing process.
This information is based on a press release statement from Sonnet BioTherapeutics Holdings, Inc.
In other recent news, Sonnet BioTherapeutics Holdings, Inc. has announced promising safety results from its Phase 1b/2a clinical trial involving SON-1010 in combination with atezolizumab for patients with advanced solid tumors or platinum-resistant ovarian cancer. The Safety Review Committee endorsed the continuation of the trial into its expansion phase after establishing the maximum tolerated dose without observing dose-limiting toxicity. The trial revealed a partial response in one patient, with a 44% reduction in tumor size, and a significant decrease in the CA 125 ovarian cancer biomarker. Additionally, Sonnet BioTherapeutics reported positive safety data from its Phase 1 SB101 trial with SON-1010 and trabectedin in treating advanced leiomyosarcoma and liposarcoma. The trial showed no unexpected toxicities, with most adverse events being mild or moderate. In a separate development, Sonnet BioTherapeutics appointed Raghu Rao as interim CEO and Stephen McAndrew as President following the passing of their former CEO, Pankaj Mohan. The company is actively seeking partnership opportunities to support the later-stage development of SON-1010 and continues to explore its proprietary Fully Human Albumin Binding platform. These developments highlight Sonnet BioTherapeutics’ ongoing efforts in advancing their therapeutic programs and strategic initiatives.
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