Sorrento announces auction for sale of Scilex securities

Sorrento Therapeutics (SRNE) announced that, in connection with its ongoing chapter 11 case, the U.S. Bankruptcy Court for the Southern District of Texas entered an order approving a $105M “stalking horse” bid for substantially all of the Debtors’ common stock, preferred stock, and warrants in Scilex Holding Company to Oramed Pharmaceuticals (ORMP). The stalking horse agreement with Oramed is subject to an auction and the submission of higher or otherwise better offers. Any parties interested in bidding for the Scilex Stock should email Sorrento’s investment banker as soon as possible to indicate their interest and discuss required bid materials. To the extent Sorrento receives any qualified bids that are higher or otherwise better than Oramed’s bid by August 11, 2023, at 5:00 p.m., Sorrento will hold an auction for the Scilex Stock on August 14, 2023. In addition, the Bankruptcy Court approved a $100M debtor-in-possession term loan facility from Oramed, which is expected to provide the Debtor with liquidity to pay off its existing senior debtor-in-possession financing facility and to continue operating its business as it pursues a sale and exit financing process and emergence from chapter 11. Latham & Watkins LLP and Jackson Walker LLP are serving as legal counsel to Sorrento. M3 Partners is serving as restructuring advisor. Moelis & Company LLC is serving as financial advisor and investment banker.