Scilex Assumed $100M In Debt Owed To Oramed Pharmaceuticals And Issued A Promissory Note And Warrants To Oramed As Part Of The Securities Transfer.
Portfolio Pulse from Benzinga Newsdesk
Scilex Holding Company (SCLX) has completed the purchase of securities from Sorrento Therapeutics (SRNEQ). As part of the deal, Scilex assumed approximately $100 million in debt owed by Sorrento to Oramed Pharmaceuticals (ORMP) and issued a promissory note and warrants to Oramed. The total consideration for the securities transfer included $110 million, legal fees and expenses of $12.25 million, and a credit bid of all amounts owed to Scilex under a financing facility provided to Sorrento.
September 21, 2023 | 8:16 pm
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NEGATIVE IMPACT
Scilex has completed a significant acquisition and assumed a large amount of debt, which could impact its financial stability in the short term.
Scilex's acquisition of securities from Sorrento and assumption of $100M debt could put financial pressure on the company, potentially leading to a short-term negative impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Oramed has had its debt from Sorrento assumed by Scilex and received a promissory note and warrants from Scilex, which could impact its financial position.
Oramed's debt from Sorrento being assumed by Scilex and the receipt of a promissory note and warrants from Scilex could impact its financial position, but it's unclear whether this will have a positive or negative effect on its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Sorrento has sold its securities to Scilex and had its debt to Oramed assumed by Scilex, which could improve its financial position.
The sale of securities to Scilex and the assumption of its debt by Scilex could improve Sorrento's financial position, potentially leading to a short-term positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80