U.S. Bankruptcy Court Extends Lockup Period On Shares Of Scilex Stock Distributed By Sorrento To Its Stockholders As Dividend
Portfolio Pulse from Benzinga Newsdesk
The U.S. Bankruptcy Court has extended the lockup period on shares of Scilex Holding Company (SCLX) that were distributed by Sorrento Therapeutics (SRNE) to its stockholders as a dividend. This decision may affect the liquidity and market behavior of SCLX shares in the short term.
March 27, 2024 | 1:01 pm
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NEUTRAL IMPACT
The extension of the lockup period on SCLX shares may temporarily reduce liquidity and delay selling pressure from Sorrento's stockholders.
The extension of the lockup period means that Sorrento's stockholders who received SCLX shares as a dividend cannot sell their shares for a longer period. This could reduce the immediate selling pressure on SCLX shares, potentially stabilizing its price in the short term. However, the impact on the stock price is uncertain as it depends on market perception and other factors.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Sorrento Therapeutics' decision to distribute SCLX shares as a dividend and the subsequent lockup extension may influence investor perception and SRNE's stock performance.
The distribution of SCLX shares as a dividend by Sorrento and the lockup extension could have mixed effects on SRNE's stock. On one hand, it shows Sorrento's commitment to providing value to its stockholders; on the other hand, the extended lockup might raise concerns about liquidity and market perception of both companies. The net effect on SRNE's stock price is uncertain and would depend on how investors interpret these actions.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70