On February 21, 2023 Sorrento Therapeutics, Inc. (Nasdaq: SRNE, "Sorrento"), a biopharmaceutical company dedicated to the development of life-saving therapeutics to treat cancer, intractable pain, and infectious disease, reported that the U.S. Bankruptcy Court for the Southern District of Texas granted interim approval of Sorrento’s $75 million debtor-in-possession financing from JMB Capital Partners, in connection with Sorrento’s chapter 11 case, which was filed on February 13, 2023 (Press release, Sorrento Therapeutics, FEB 21, 2023, View Source [SID1234627488]).
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The financing will provide Sorrento with immediate liquidity so that it can continue operating its business as usual during its chapter 11 case. A hearing for final approval of the financing is currently set for March 29, 2023.
Dr. Henry Ji, Ph.D., Chairman and Chief Executive Officer of Sorrento, commented: "We are pleased to have received approval from the Court for this financing, which will ensure Sorrento has the liquidity and ability to continue normal business operations, including the payment of employee wages and benefits and post-petition vendor obligations. We will continue our important work of developing new and innovative therapies for patients struggling with cancer, intractable pain, infectious disease, and more."
As of its chapter 11 filing, Sorrento had over approximately $1 billion in assets. However, due to the possibility of certain actions by a litigation creditor, Sorrento and its wholly-owned, non-operating subsidiary Scintilla Pharmaceuticals, Inc. sought chapter 11 relief to safeguard its business and ensure the continuation of business operations, while protecting and maximizing value for stakeholders.
Scilex Holding Company (Nasdaq: SCLX, "Scilex"), which is majority-owned by Sorrento, is not a debtor in Sorrento’s chapter 11 case. Scilex is continuing to operate its business as usual, focusing on growing revenues, offering innovative, non-opioid pain management products, and developing meaningfully differentiated programs that address significant unmet needs and lead to better health outcomes for the millions of acute and chronic pain patients.
Latham & Watkins LLP and Jackson Walker LLP are serving as legal counsel to Sorrento. M3 Partners is serving as restructuring advisor.