** Shares of drug developer Sonnet Biotherapeutics SONN.O nearly quadruple, rising 281.4% to $19.67 premarket

** Co says it will merge with Rorschach I to create Hyperliquid Strategies (HSI), a new public company focused on holding and managing HYPE, a top cryptocurrency

** As of July 6, HYPE is ranked as the 13th-largest cryptocurrency by market value, according to Forbes.

** The newly created entity is expected to hold approximately 12.6 million HYPE tokens, representing $583 million in value, the company says

** The deal, expected to close in the second half of 2025, will leave Sonnet shareholders with about 1.2% of HSI, with the remainder owned by Rorschach and new investors. Sonnet will raise $5.5 million in a private placement ahead of the merger

** Up to last close, SONN up 254.1% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))