SORRENTO THERAPEUTICS INC - SRNE STOCK NEWS

Sorrento Therapeutics, Inc. (Nasdaq: SRNE) announced that the U.S. Bankruptcy Court granted interim approval for $75 million debtor-in-possession financing from JMB Capital Partners as part of its Chapter 11 proceedings initiated on February 13, 2023. This financing ensures continued business operations, including employee wages. Sorrento possesses approximately $1 billion in assets but sought Chapter 11 to protect its business from litigation risks. Meanwhile, Scilex Holding Company (Nasdaq: SCLX), Sorrento's majority-owned subsidiary, is not affected by the bankruptcy, continuing its focus on non-opioid pain management products.

Sorrento Therapeutics, Inc. (Nasdaq: SRNE) has posted IRS Form 8937 regarding its recent distribution of shares of Scilex Holding Company to stockholders. On January 19, 2023, the company distributed 76 million shares of Scilex, with a ratio of 0.1410127 shares for each Sorrento share held. This distribution is expected to be characterized as a non-dividend return of capital due to insufficient earnings and profits. Sorrento urges stockholders to consult their tax advisors regarding the tax implications of this distribution.

Sorrento Therapeutics (Nasdaq: SRNE) announced an update regarding its recent dividend distribution of shares of Scilex Holding Company (Nasdaq: SCLX) to its stockholders. The FAQ update includes a notice about a newly added 'No Lien Code V050I' by Continental Stock Transfer & Trust Company, confirming that the Scilex shares now solely bear its CUSIP number. Investors are advised to verify this information with their brokerage firms. The company is also addressing substantial 'naked short' positions in Scilex by coordinating with regulatory agencies to ensure compliance with trading laws.

Sorrento Therapeutics, Inc. (Nasdaq: SRNE) announced the U.S. Bankruptcy Court approved its employee wages motion and interim cash management motion following its Chapter 11 filing on February 13, 2023. This approval allows the company to maintain normal operations while safeguarding its business, which includes over $1 billion in assets. Sorrento aims to protect stakeholder value amid ongoing litigation. Notably, Scilex Holding Company (Nasdaq: SCLX), a majority-owned subsidiary, remains unaffected by Sorrento's bankruptcy and continues to operate and develop non-opioid pain management products.

Sorrento Therapeutics announced on February 16, 2023, that the U.S. Bankruptcy Court for the Southern District of Texas approved its motions for employee wages and interim cash management, following its Chapter 11 petition filed on February 13, 2023. The company, which has over $1 billion in assets, seeks to protect its business amidst litigation risks. Scilex Holding Company, a majority-owned subsidiary, is not a debtor in this process and continues its operations focusing on innovative pain management products. CEO Henry Ji stated that these motions will help maintain normal operations and support the development of new therapies.

Sorrento Therapeutics, Inc. (Nasdaq: SRNE) and its subsidiary Scilex Holding Company (Nasdaq: SCLX) have announced that Sorrento has commenced voluntary Chapter 11 bankruptcy proceedings in Texas. Importantly, Scilex is not a debtor in this filing and will continue its operations without interruption. As of the bankruptcy filing, Sorrento had approximately $1 billion in assets and $235 million in liabilities. The company aims to safeguard its business amidst financial challenges, including a $50 million judgment that could disrupt operations. Scilex remains focused on growth in non-opioid pain management, including its product SEMDEXA™.

Scilex Holding Company has acquired the rights to ELYXYB^TM, the only FDA-approved ready-to-use oral solution for treating acute migraines in adults. This acquisition aligns with Scilex's strategy to enhance its portfolio of non-opioid pain management products and targets a growing market projected to reach US$9.26 billion by 2030. ELYXYB^TM is backed by six method-of-use patents expiring in 2036 and has demonstrated rapid efficacy with low side effects. Scilex benefits from a robust distribution network and an experienced commercial team, positioning it well for successful market entry and growth in the pain management sector.

PALO ALTO, Calif., Feb. 04, 2023 – Scilex Holding Company, a subsidiary of Sorrento Therapeutics (Nasdaq: SRNE), announced its virtual-only Annual Meeting of Stockholders on April 6, 2023, at 9 AM PST. The record date for stockholder eligibility is March 6, 2023. Scilex is focused on developing non-opioid pain management products and has made advancements with its novel product SEMDEXA™ for lumbosacral radicular pain. The company has a strong pipeline with FDA Fast Track status for several candidates and plans to commercialize Gloperba® in 2023, enhancing its presence in the pain management market.

Sorrento Therapeutics, Inc. (Nasdaq: SRNE) has confirmed dividends for stockholders, distributing 76 million shares of Scilex Holding Company (Nasdaq: SCLX) common stock. These Dividend Confirmation Statements were sent to 146 brokerage firms, detailing shares allocated to stockholders of record as of January 9, 2023. Each holder of Sorrento common stock is entitled to receive 0.1410127 of a share of Scilex stock for each share held. The payment date for the dividend was January 19, 2023. Notably, around 60 million Sorrento shares were sold short by the Record Date, which may impact liquidity for Scilex's stock.