Sorrento Issues a “FAQ” in Response to Large Number Of Urgent Requests from Scilex Dividend Short Holders and/or Record Holders

SAN DIEGO, July 27, 2023 (GLOBE NEWSWIRE) -- 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, today announced that, in connection with its ongoing chapter 11 case, it has posted a “Frequently Asked Questions” (FAQ) document in response to a number of requests from parties who hold short interests in restricted stock (the “Dividend Short Holders”) of Scilex Holding Company (Nasdaq: SCLX, “Scilex”) regarding its previously announced elective offering of restricted stock of Scilex (the “Offering”).

The FAQ document will be posted under the “Investors” section of its website at www.sorrentotherapeutics.com. The FAQs address questions regarding the process and expected mechanics by which the Dividend Short Holders can purchase the Scilex stock either in open market purchases or in private, secondary transactions with Sorrento.   

The FAQ document is included in this press release and Sorrento will also send the FAQ via email and overnight mail on or about July 27, 2023 to Scilex record holders and to brokerage firms, banks, dealers and similar organizations.

FREQUENTLY ASKED QUESTIONS

PROCESS FOR SHARE PURCHASE FROM OPEN MARKET

1.   Once Scilex Dividend Short Holders (the “Buyer”) acquire shares of Scilex Holding Company (“Scilex”) common stock in the open market, the Buyer will enter into an agreement with Scilex to impose the lock-up restriction expiring September 1, 2023 (the “Lockup”) on the purchased shares.

1. The agreement will be a short form letter agreement, pursuant to which the Buyer will agree to the imposition of the Lockup legend (through September 1, 2023) on its shares and Scilex will agree to the waiver under #4 below.
2. Following the open market purchases, Buyer can contact Stephen Ma at Scilex Holding Company, Inc. ([e-mail]) to obtain a copy of the agreement for execution.
3. The agreement will be executed by Scilex and the Buyer or record holder of the acquired shares.
4. If a holder of a short-position already holds unrestricted shares of Scilex common stock, such holder may convert such shares into restricted shares subject to the Lockup via the same process outlined here for Buyers.

2.   Scilex and Buyer will jointly instruct Continental Stock Transfer & Trust Company, Scilex’s transfer agent (“Continental”), to impose the Lockup on the shares.