Scilex Holding Company Announces That Sorrento Therapeutics, Inc.'s Bankruptcy Court Issues Temporary Restraining Order Against Brokerage Firms And Suspends Short-Sales Of Dividended Scilex Stock
Portfolio Pulse from Benzinga Newsdesk
Scilex Holding Company (SCLX) announces that the U.S. Bankruptcy Court has issued a temporary restraining order suspending short-sales of its common stock distributed by Sorrento Therapeutics (SRNEQ) during its ongoing chapter 11 case. The court also ordered certain brokerage firms to provide an accounting of all profits from naked short-selling of the stock.
June 15, 2023 | 1:05 pm
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Sorrento Therapeutics' ongoing chapter 11 case has led to the U.S. Bankruptcy Court suspending short-sales of Scilex Holding Company's common stock, which Sorrento distributed.
The ongoing chapter 11 case for Sorrento Therapeutics may negatively impact its stock price in the short term, as it creates uncertainty for the company's future. The suspension of short-sales of Scilex Holding Company's stock, which Sorrento distributed, adds to this uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Scilex Holding Company's stock short-sales have been temporarily suspended by the U.S. Bankruptcy Court during Sorrento Therapeutics' chapter 11 case.
The temporary restraining order suspending short-sales of SCLX stock may lead to reduced selling pressure in the short term. However, the ongoing bankruptcy case of its majority owner, Sorrento Therapeutics, may still create uncertainty for the stock, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100