Sonnet BioTherapeutics (SONN, Financial) has revealed a strategic move to merge with Rorschach I LLC, an entity linked with Atlas Merchant Capital LLC and Paradigm Operations LP, along with additional partners. This business combination aims at repositioning the company by integrating HYPE, the token of the Hyperliquid Layer-1 blockchain, within its operations.
Upon finalization, the new entity, Hyperliquid Strategies, plans to hold about 12.6 million HYPE tokens, valued at roughly $583 million, supported by a minimum cash investment of $305 million. The projected total value at closing stands at $888 million. Key investors include Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
The entity plans to continue trading on the Nasdaq Capital Market under a new ticker, converting it into a public cryptocurrency treasury firm. The proceeds will significantly boost HSI's HYPE holdings, positioning it among the largest token reserves.
Leadership changes will accompany the transaction, with Bob Diamond set to become the Chairman, and David Schamis as the CEO. The organization intends to appoint a new CFO and expand its board, including Eric Rosengren, former Boston Fed President, along with two of Sonnet's existing independent directors. A Sponsor Advisory Agreement with Rorschach will assist in integrating HYPE into its treasury strategy.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Sonnet BioTherapeutics Holdings Inc (SONN, Financial) is $20.00 with a high estimate of $20.00 and a low estimate of $20.00. The average target implies an upside of 286.85% from the current price of $5.17. More detailed estimate data can be found on the Sonnet BioTherapeutics Holdings Inc (SONN) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Sonnet BioTherapeutics Holdings Inc's (SONN, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
