Core Viewpoint - Hyperliquid Strategies Inc has completed a business combination with Sonnet BioTherapeutics Holdings, allowing it to operate as a digital asset treasury reserve company and begin trading on Nasdaq under the ticker "PURR" on December 3, 2025 [1][2]. Company Overview - Hyperliquid Strategies Inc (HSI) will focus on maximizing shareholder value by accumulating HYPE, the native token of Hyperliquid, a high-performance blockchain designed for all finance [6]. - HSI aims to provide capital-efficient access to the HYPE token for U.S. and institutional investors, generating compounding shareholder returns [6]. - The company is positioned to become the largest HYPE-focused digital asset treasury vehicle, capitalizing on Hyperliquid's rapid growth [6]. Business Combination Details - The business combination involved a five-for-one exchange ratio for shares received by Sonnet shareholders and Rorschach members [3]. - David Schamis will serve as the CEO of HSI, with a board of directors that includes notable figures such as Bob Diamond and Eric Rosengren [3]. Market Position and Strategy - HSI's digital asset treasury strategy allows U.S. equity investors to gain exposure to the HYPE token through a highly liquid listing [4]. - The Hyperliquid blockchain is recognized as a leading platform for perpetual futures and spot trading, processing billions in daily trading volume [5]. - The company aims to attract substantial trading volumes from a growing community of traders and developers [5]. Legal and Advisory Support - Chardan acted as the sole placement agent and exclusive financial advisor to Rorschach for the transaction [5]. - Legal counsel for HSI was provided by Greenberg Traurig, LLP, while Lowenstein Sandler LLP served as legal counsel to Sonnet [5].

Core Viewpoint - Sonnet BioTherapeutics, Inc. is entering a business combination with Rorschach I LLC to create Hyperliquid Strategies Inc, which will hold a significant reserve of HYPE tokens, positioning it as a leading cryptocurrency treasury management company in the U.S. [1][2][5] Company Overview - Sonnet BioTherapeutics is an oncology-focused biotechnology company utilizing a proprietary platform for developing biologic drugs, specifically targeting tumor and lymphatic tissues [13]. - The company is known for its Fully Human Albumin Binding (FHAB) technology, which enhances the safety and efficacy of immune-modulating biologic drugs [13]. Business Combination Details - The business combination will result in Hyperliquid Strategies Inc (HSI) holding approximately 12.6 million HYPE tokens valued at $583 million and gross cash proceeds of at least $305 million, leading to a total assumed closing value of $888 million [2][3]. - Prominent strategic investors participating in the transaction include Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital [2]. Management and Governance - Upon closing, Bob Diamond will serve as Chairman of the Board, and David Schamis will be the Chief Executive Officer of HSI, with plans to appoint a new Chief Financial Officer and additional board members [3][5]. Financial Strategy - The gross cash proceeds from the business combination will enable HSI to acquire more HYPE tokens, establishing one of the top strategic reserves of the token [3]. - Sonnet will also raise $5.5 million through a private placement to accredited investors, which will support general corporate purposes and the development of its biotech assets [6]. Future Operations - Post-combination, Sonnet will operate as a wholly owned subsidiary of HSI, continuing its focus on existing biotech assets while potentially disposing of others [7]. - Current owners of Rorschach and new investors are expected to own approximately 98.8% of HSI, while legacy stockholders of Sonnet will hold about 1.2% [8]. Regulatory and Approval Process - The business combination has been approved by the governing boards of both companies and is subject to Sonnet stockholder approval and customary closing conditions, with an expected closing in the second half of the year [9].