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In connection with its ongoing chapter 11 case, Sorrento Therapeutics, Inc. (OTC:SRNEQ, ", , Sorrento", , ))))), a biopharmaceutical company dedicated to the development of life-saving therapeutics to treat cancer, intractable pain, and infectious disease, and its Official Committee of Equity Securities Holders (the "Equity Committee") on July 20, 2023 officially launched an exclusive offer ("the Offering") pursuant to the order (the "Order") entered by the U.S. Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") on July 18, 2023. The Offering provides parties (the "Dividend Short Holders") who hold short interests in restricted common stock (the "Restricted Scilex Stock") of Sorrento's non-debtor public subsidiary, Scilex Holding Company (NASDAQ:SCLX, ", , Scilex", , ))))), with an opportunity to purchase Restricted Scilex Stock for the sole 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 in the Offering 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. In connection with the Offering, an Information Memorandum was distributed via FedEx and emailed to approximately 160 brokerage firms or record holders of short positions in Restricted Scilex Stock on July 20, 2023 pursuant to the Order. The deadline to participate in the Offering is July 27, 2023, subject to any extensions granted by Sorrento following consultation with the Equity Committee.
The Offering of the Restricted Scilex Stock by Sorrento would be made pursuant to a Registration Statement on Form S-1 (Registration No. 333-268603) previously filed by Scilex and declared effective by the Securities and Exchange Commission ("SEC") and the related prospectus. These documents can be accessed for free through the SEC's website at www.sec.gov. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any shares of Restricted Scilex Stock, nor shall there be any sale of Restricted Scilex Stock in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
