Sorrento, equity committee launch offering to Scilex dividend short holders

By Sarah Lizee

Olympia, Wash., July 21 – Sorrento Therapeutics, Inc. and its official committee of equity securities holders launched an offering to dividend short holders who hold short interests in restricted common stock of Sorrento's non-debtor public subsidiary Scilex Holding Co., according to a press release.

Holders will have an opportunity to purchase restricted Scilex stock for the purpose of covering their short positions, and to the extent applicable, delivering the borrowed shares to the lenders thereof.

Dividend short holders may elect to participate in the offering. Participants may receive a release for any claims and causes of action that Sorrento or Scilex may have relating to naked or otherwise impermissible short selling.

The dividend short holders can purchase the restricted Scilex stock either in open market purchases or in private, secondary transactions with Sorrento at a price to be determined by Sorrento's chief restructuring officer, in consultation with the official committee of unsecured creditors and the equity committee.

The deadline to participate in the offering is July 27, subject to any extensions granted by Sorrento following consultation with the equity committee.

The biopharmaceutical company is based in San Diego. The company filed bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on Feb. 13 under Chapter 11 case number 23-90085.

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