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Scilex Holding Company Provides Notice to All Record Holders and Beneficial Owners of Restricted Shares of Scilex Holding Company
PALO ALTO, Calif., Oct. 03, 2023 (GLOBE NEWSWIRE) -- Scilex Holding Company (Nasdaq: SCLX, “Scilex” or “Company”), an innovative revenue-generating company
About this update from Scilex Holding Company
[{"type":"text","content":"PALO ALTO, Calif., Oct. 03, 2023 (GLOBE NEWSWIRE) -- Scilex Holding Company (Nasdaq: SCLX, “Scilex” or “Company”), an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain, provides notice to all record holders and beneficial owners of restricted shares of Scilex common stock that were part of the previously announced dividend of Scilex common stock then-held by Sorrento Therapeutics, Inc. (OTC: SRNEQ, “Sorrento”) to Sorrento equity holders of record as of January 9, 2023. NOTICE TO ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF RESTRICTED SHARES OF SCILEX HOLDING COMPANY On December 30, 2022, Sorrento Therapeutics, Inc. (“Sorrento”) announced that its board of directors authorized Sorrento to dividend to Sorrento equity holders of record as of January 9, 2023 an aggregate of 76,000,000 shares of common stock of Scilex Holding Company (“Scilex”) that were then-held by Sorrento (“Scilex Dividend Stock”). The Scilex Dividend Stock was distributed on or about January 19, 2023 (“Payment Date”) and since such date has been subject to restrictions on transfer which are currently in place through March 31, 2024 (“Lockup”). The Scilex Dividend Stock was primarily received by “record holders,” or brokers, dealers, banks and other nominees acting as agents for shareholders who are the true “beneficial owners” of the Scilex Dividend Stock. On February 13, 2023, Sorrento and certain of its related entities (collectively “Debtors”), which did not include Scilex, commenced voluntary proceedings under Chapter 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). The Chapter 11 proceedings are jointly administered under the caption In re Sorrento Therapeutics, Inc., et al. (“Bankruptcy Proceedings”). According to Sorrento’s estimates, approximately 8.4 million or more shares of Scilex common stock were deemed to have been sold “short” as of the Payment Date as a result of the “short” positions of the underlying Sorrento common stock. “Naked short” sales or “naked short” positions in any Scilex common stock may constitute a violation of SEC Regulation SHO. On June 12, 2023, the Official Committee of Equity Securities Holders of the Debtors (“Equity Committee”) comm...