{"id":728725,"date":"2023-02-03T21:02:56","date_gmt":"2023-02-04T02:02:56","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/sorrento-distributes-dividend-confirmation-statements-to-146-brokerage-firms-and-provides-specific-instruction-to-continental-stock-transfer-trust-company-regarding-the-dividend-of-scilex-holdin\/"},"modified":"2023-02-03T21:02:56","modified_gmt":"2023-02-04T02:02:56","slug":"sorrento-distributes-dividend-confirmation-statements-to-146-brokerage-firms-and-provides-specific-instruction-to-continental-stock-transfer-trust-company-regarding-the-dividend-of-scilex-holdin","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/sorrento-distributes-dividend-confirmation-statements-to-146-brokerage-firms-and-provides-specific-instruction-to-continental-stock-transfer-trust-company-regarding-the-dividend-of-scilex-holdin\/","title":{"rendered":"Sorrento Distributes Dividend Confirmation Statements to 146 Brokerage Firms and Provides Specific Instruction to Continental Stock Transfer & Trust Company Regarding the Dividend of Scilex Holding Company Common Stock"},"content":{"rendered":"
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SAN DIEGO, Feb. 03, 2023 (GLOBE NEWSWIRE) — Sorrento Therapeutics, Inc. (Nasdaq: SRNE, \u201cSorrento\u201d) today distributed dividend confirmation statements to 146 brokerage firms regarding its recent dividend to Sorrento stockholders of shares of common stock of Scilex Holding Company (Nasdaq: SCLX, \u201cScilex\u201d) held by Sorrento. These statements, which contain the account numbers and amount of Scilex dividend shares, were previously mailed out by Continental Stock Transfer & Trust Company.<\/p>\n

The dividend confirmation statements are being distributed on behalf of Sorrento and Scilex to notify each brokerage firm of Sorrento\u2019s previously announced stock dividend (the \u201cDividend\u201d) consisting of an aggregate of 76,000,000 shares (the \u201cDividend Stock\u201d) of common stock of Scilex held by Sorrento to record holders of (i) Sorrento\u2019s common stock (the \u201cRecord Common Holders\u201d) as of the close of business on January 9, 2023 (the \u201cRecord Date\u201d), and (ii) certain warrants to purchase Sorrento common stock (which have or may have the right to participate in the Dividend pursuant to the terms of their respective warrants).<\/p>\n

According to Sorrento\u2019s estimates, approximately 60 million or more shares of Sorrento common stock were sold \u201cshort\u201d as of the Record Date. In the event the shares of Sorrento common stock were held through a brokerage firm, bank, dealer or other similar organization and were sold \u201cshort\u201d as of the Record Date, holders should consult with their financial advisor, broker or other agent immediately to determine whether they may also be deemed \u201cshort\u201d Scilex common stock as a result of the Dividend, as well as any obligations required for you to cover your \u201cshort\u201d position(s). Please note that \u201cnaked short\u201d sales or \u201cnaked short\u201d positions in any Sorrento common stock may constitute a violation of the U.S. Securities and Exchange Commission Regulation SHO.<\/p>\n

Each Record Common Holder is entitled to receive 0.1410127 of a share of Scilex common stock for each one share of Sorrento common stock held by such Record Common Holder as of the close of business on the Record Date. The payment date for the Dividend was January 19, 2023. The resulting fewer number of shares of Scilex common stock that will be available to trade could cause the trading market of the common stock of Scilex to become less liquid<\/strong>. As noted above, Scilex\u2019s transfer agent, Continental Stock Transfer & Trust Company (\u201cCST\u201d), has already distributed to brokerage firms, as the Record Common Holder (for the benefit of their customers that held Sorrento common stock on the Record Date), a book-entry\/DRS transaction confirmation (the \u201cDividend Confirmation Statement\u201d) reflecting the portion of the Dividend Stock allocated to such firm (for the benefit of their customers that held Sorrento common stock on the Record Date), which Dividend Confirmation Statements were mailed to the addresses on record with The Depository Trust & Clearing Corporation.<\/p>\n

In the event that brokerage firms did not receive copies of the Dividend Confirmation Statements, please contact CST immediately. Sorrento and Scilex are requesting that each brokerage firm distribute the Dividend Stock to the actual beneficial owners thereof and to reflect Scilex\u2019s CUSIP number 80880W106<\/strong> and value of Scilex common stock on each beneficial owner\u2019s brokerage statement.\u00a0\u00a0<\/p>\n

Sorrento and Scilex have given specific instructions to Scilex\u2019s transfer agent, CST, on how to answer certain inquiries from Record Holders and brokerage firms:<\/p>\n