Overview
- The public vehicle is being created through a reverse merger between Nasdaq-listed Sonnet BioTherapeutics and Rorschach I LLC, led by chairman Bob Diamond and CEO David Schamis.
- The S-1 outlines an offering of up to 160 million shares, with Chardan Capital Markets advising, to raise as much as $1 billion for corporate purposes including HYPE accumulation and staking.
- Disclosed treasury assets include 12.6 million HYPE tokens and about $305 million in cash, plus access to a $1 billion facility for potential additional HYPE purchases, with plans to stake substantially all token holdings.
- HYPE rose roughly 7–12% on the news, as a same-day Robinhood listing broadened retail access and trading activity, with reports of rising volumes and open interest.
- The offering and Nasdaq listing are not yet effective, and the filing warns of enhanced regulatory scrutiny and significant dilution that would leave Sonnet shareholders with roughly 1.2% of the new company.