SAN DIEGO, Sept. 22, 2023 /PRNewswire/ -- Sorrento
Therapeutics, Inc. (OTC: SRNEQ, "Sorrento" or "Company"), a
biopharmaceutical company dedicated to the development of
life-saving therapeutics to treat cancer, intractable pain, and
infectious disease, announced the consummation on September 21, 2023, of the previously announced
sale to Scilex Holding Company (Nasdaq: SCLX, "Scilex") of certain
securities that Sorrento held in Scilex.
Pursuant to that certain Stock Purchase Agreement entered into
on September 21, 2023, between Scilex
and Sorrento, Scilex, through its wholly-owned subsidiary, acquired
(i) all of the shares of Scilex common stock owned by Sorrento
(other than such shares held in abeyance by Sorrento on behalf of
certain warrant holders of Sorrento), (ii) all of the shares of
Scilex preferred stock owned by Sorrento, and (iii) all of the
warrants for the purchase of shares of Scilex common stock owned by
Sorrento (collectively, the "Securities Transfer") for aggregate
consideration consisting of: (i) $110
million (comprised of cash payments of $10 million (in the aggregate) and the assumption
by Scilex of the approximately $100
million senior secured term loan facility provided by Oramed
Pharmaceuticals Inc. (Nasdaq: ORMP, "Oramed") to Sorrento ); plus
(ii) the assumption by Scilex of certain legal fees and expenses of
Sorrento in the amount of approximately $12.25 million; plus (iii) a credit bid of all
amounts owed to Scilex under the junior secured
debtor-in-possession financing facility provided by Scilex to
Sorrento. As a result of the Securities Transfer, the Company
no longer has a controlling interest over Scilex and Scilex ceased
to be a majority-owned subsidiary of Sorrento. Consequently, we
expect Scilex will be deconsolidated from the Company's financial
statements prospectively and will be presented as discontinued
operations.
Additionally, upon the closing of the Securities Transfer,
Sorrento and Oramed mutually terminated that certain Stock Purchase
Agreement (as amended, the "Oramed SPA"), dated as of August 7, 2023, between Oramed and Sorrento for
the sale of Sorrento's equity interests in Scilex to Oramed, which
termination includes a release of claims by each of the parties
relating to the Oramed SPA.
About Sorrento Therapeutics, Inc.
Sorrento is a clinical and commercial stage biopharmaceutical
company developing new therapies to treat cancer, pain (non-opioid
treatments), autoimmune disease and COVID-19. Sorrento's
multimodal, multipronged approach to fighting cancer is made
possible by its extensive immuno-oncology platforms, including key
assets such as next-generation tyrosine kinase inhibitors ("TKIs"),
fully human antibodies ("G-MAB™ library"), immuno-cellular
therapies ("DAR-T™"), antibody-drug conjugates ("ADCs"), and
oncolytic virus ("Seprehvec™"). Sorrento is also developing
potential antiviral therapies and vaccines against coronaviruses,
including STI-1558 and COVI-MSC™; and diagnostic test solutions,
including COVIMARK™.
Sorrento's commitment to life-enhancing therapies for patients
is also demonstrated by our effort to advance a TRPV1 agonist,
non-opioid pain management small molecule, resiniferatoxin ("RTX").
RTX has been cleared for a Phase II trial for intractable pain
associated with cancer and a Phase II trial in osteoarthritis
patients.
For more information visit www.sorrentotherapeutics.com.
Forward-Looking Statements
This press release and any statements made for and during any
presentation or meeting concerning the matters discussed in this
press release contain forward-looking statements related to
Sorrento and its subsidiaries under the safe harbor provisions of
Section 21E of the Private Securities Litigation Reform Act of 1995
and are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Forward-looking
statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," and similar expressions.
Forward-looking statements include statements regarding the
Securities Transfer and the anticipated accounting treatment
resulting from the Securities Transfer.
Risks and uncertainties that could cause Sorrento's actual
results to differ materially and adversely from those expressed in
our forward-looking statements, include, but are not limited to
risks associated with the ability of the Company to use such
proceeds efficiently in support of its business; the Company's
ability to obtain exit financing and to pursue a plan of
reorganization to exit its chapter 11 bankruptcy; and those factors
discussed in the Company's Annual Report on Form 10-K for the year
ended December 31, 2022 and
subsequent Quarterly Reports on Form 10-Q filed with the SEC in
each case under the heading "Risk Factors," and other documents of
the Company filed, or to be filed, with the SEC. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. There may be additional risks that the Company
presently does not know or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. Investors are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release,
and Sorrento undertakes no obligation to update any forward-looking
statement in this press release except as may be required by
law.
Contacts:
For Sorrento Therapeutics, Inc.
Media Contact
The Levinson Group
212-202-2754
Email: sorrento@tlgcommunications.com
Website: www.sorrentotherapeutics.com
Sorrento® and the Sorrento logo are registered
trademarks of Sorrento Therapeutics, Inc.
G-MAB™, DAR-T™, Seprehvec™, SOFUSA™, COVI-MSC™, COVIMARK™,
Fujovee™ and Ovydso™ are trademarks of Sorrento Therapeutics,
Inc.
All other trademarks are the property of their respective
owners.
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SOURCE Sorrento Therapeutics, Inc.