Sorrento Therapeutics, Inc. Receives Final Court Approval for $75 Million Debtor-In-Possession Financing

On March 29, 2023 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, reported that the U.S. Bankruptcy Court for the Southern District of Texas granted final approval of Sorrento’s $75 million debtor-in-possession (DIP) financing from JMB Capital Partners, in connection with Sorrento’s chapter 11 case that was filed on February 13, 2023 (Presentation, Sorrento Therapeutics, MAR 29, 2023, View Source [SID1234629513]).

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This follows the Court’s interim approval of the DIP financing, granted on February 21, 2023 with respect to $30 million of the DIP financing. Today’s final approval provides Sorrento with an additional $45 million of liquidity so that it can continue operating its business during its chapter 11 case.

Dr. Henry Ji, Ph.D., Chairman and Chief Executive Officer of Sorrento, commented: "We are pleased that the Court has granted final approval for this financing. Sorrento will continue operating our business throughout this process, including paying employee wages and benefits and advancing innovative therapies for patients struggling with cancer, intractable pain, infectious disease, and more."

As previously disclosed, 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. On March 17, 2023, as previously disclosed, the LA County Superior Court confirmed an arbitration award of $125 million in damages, to be paid to Sorrento by NantPharma, LLC.

Latham & Watkins LLP and Jackson Walker LLP are serving as legal counsel to Sorrento. M3 Partners is serving as restructuring advisor. Moelis & Company is serving as financial advisor and investment banker.