Reported Earlier, Scilex Announces Move To Extend Lockup Period For Sorrento-Distributed Dividend Shares Until September 2024
Portfolio Pulse from Benzinga Newsdesk
Scilex Holding Company (SCLX) announced that the Creditors' Committee of Sorrento Therapeutics (SRNEQ) has filed a motion with the U.S. Bankruptcy Court to extend the lockup period for the shares distributed as a dividend to Sorrento's stockholders until September 2024. These shares were initially distributed on January 19, 2023, with a lockup period set to expire on March 31, 2024. The decision by the court is pending.

March 04, 2024 | 6:55 am
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NEUTRAL IMPACT
Scilex's announcement about the extension of the lockup period for dividend shares may create uncertainty among investors, potentially affecting the stock's short-term performance.
The extension of the lockup period for dividend shares distributed by Sorrento to Scilex stockholders could lead to short-term uncertainty among investors. This uncertainty might result in temporary volatility in Scilex's stock price as investors reassess the implications of the extended lockup period on their investment.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The motion filed by Sorrento's Creditors' Committee to extend the lockup period for Scilex dividend shares reflects ongoing legal proceedings that could influence investor perception and the stock's short-term trajectory.
Sorrento's involvement in the motion to extend the lockup period for the dividend shares it distributed indicates ongoing legal proceedings. This situation could lead to short-term uncertainty among investors regarding Sorrento's financial health and future prospects, potentially impacting its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70