SAN DIEGO, May 14, 2023 /PRNewswire/ -- 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, the U.S. Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") has entered an order compelling certain brokerage firms to (on or before May 23, 2023) credit all shares of common stock of Scilex Holding Company (Nasdaq: SCLX) that Sorrento distributed to its stockholders on or around January 19, 2023 (the "Dividended Scilex Stock") to their customers' accounts.

In addition, the Bankruptcy Court ordered the brokerage firms to file a report with the Bankruptcy Court detailing as to each customer's account, on an anonymous basis, the number of shares of Dividended Scilex Stock credited and the quoted price of such stock on a marked-to-market basis.  The brokerage firms must also complete and file a report with the Bankruptcy Court regarding their compliance with the court's order.

The Bankruptcy Court's order approves a motion filed by the Official Committee of Equity Security Holders in Sorrento's chapter 11 case, who had requested the relief. The committee of equity security holders was appointed in the case to act as a fiduciary for, and represent the interests of, all Sorrento stockholders. A copy of the order has been served on the brokerage firms via overnight mail and email.

WHAT SHOULD HOLDERS OF DIVIDENDED SCILEX STOCK DO NEXT?

Sorrento strongly urges all holders of Dividended Scilex Stock to contact their individual brokers to demand the following:

1. That your shares of Dividended Scilex Stock be distributed into your individual brokerage account.

2. That your broker provide real-time quotes on the Dividended Scilex Stock in your individual brokerage account.

3. That your broker certify to the Bankruptcy Court such broker's compliance with Regulation SHO and 17 C.F.R. § 240.15c3-3.

If holders of Dividended Scilex Stock are unable to reach their brokers and have their shares of Dividended Scilex Stock distributed to their individual accounts and/or real-time quotes provided on such stock in their individual accounts, Sorrento strongly urges such holders to notify Sorrento, and Sorrento will in turn notify the Bankruptcy Court of such situation.  Such holders can submit a notification to Sorrento at sclxdividendshares@sorrentotherapeutics.com.

As previously announced, on April 25, 2023, the Bankruptcy Court entered an order extending the expiration of the restrictions on transfer of the Dividended Scilex Stock from May 11, 2023 to September 1, 2023 (or an otherwise earlier date to be determined, as set forth in the order).