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Sonnet BioTherapeutics, a Princeton, N.J.-based cancer drug developer, agreed to go public via a reverse merger with Chanticleer Holdings (Nasdaq: BURG), a Charlotte-based owner and operator of Hooters restaurants and various burger chains.
Why it matters: Reverse mergers often involve odd bedfellows, but this takes it to a new level.
By the numbers: Chanticleer peaked at $35 per share in 2015, but was trading below $1 per share before the merger announcement. It plans to spin off its restaurant assets into a separate company owned by current shareholders, with Sonnet paying $6 million for a 96% stake in the public listing that will be re-tickered SONN.
The bottom line: "Chanticleer has suffered amid a broader decline in fast-casual dining. Hooters, once known for its scantily clad female waitstaff, has increasingly seemed out of date," writes Bloomberg.