Chanticleer Holdings, the parent company of restaurant brands including Hooters, is taking the company in another direction.

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The company is merging with Sonnet BioTherapeutics, a privately-held clinical stage biopharmaceutical company.

As part of the deal, Chanticleer will spin-off its restaurant holdings, including American Burger Company, BGR – Burgers Grilled Right, Little Big Burger, Just Fresh and Hooters into a separate publically traded company.

The news sent Chanticleer shares soaring almost 40 percent.

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Shareholders of Sonnet will become the majority owners of the combined company which will take the Sonnet name.

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The new company will focus on advancing Sonnet’s pipeline of oncology candidates and the strategic expansion of Sonnet’s technology platform into other human diseases.