Sorrento Therapeutics Inc. (OTC: SRNEQ), a clinical stage biopharmaceutical company, announced that the Bankruptcy Court of Delaware entered an order requiring the top 25 brokers, dealers, banks, and other nominees that act as agents for Sorrento shareholders to provide Sorrento with information about common stock of (SCLX). Sorrento has already distributed a dividend of 76 million shares of common stock to its shareholders, which is held in custody by these agents. However, the brokers have failed to report the ownership of the shares to the entity appointed for tracking these voting activities prior to the annual shareholder meeting.
The above-mentioned order requires the Brokerages to provide information regarding the ownership and trading of common stock. Sorrento had earlier announced that both it and its wholly-owned, non-operating subsidiary had sought chapter 11 relief to safeguard their business and continue operations as a means of protecting and maximizing value for stakeholders. SCLX is not a debtor in the case.
Sorrento is committed to providing life-enhancing therapies to patients, which is demonstrated by its effort to advance a TRPV1 agonist (RTX, a non-opioid pain management small molecule, to treat cancer and osteoarthritis). The FDA approved ZTlido (lidocaine topical system) 1.8% for treating postherpetic neuralgia, and RTX has already been cleared for a Phase 2 trial for cancer and osteoarthritis. Additionally, Sorrento is working on potential antiviral therapies and vaccines against coronaviruses, including STI-1558 and COVI-MSC, as well as diagnostic test solutions such as COVIMARK.
The company’s CEO, Henry Ji, Ph.D., is a globally renowned entrepreneur and biotechnology executive with nearly three decades of industry experience. He is reported to be optimistic about the Chapter 11 process, leveraging it to grow the company’s business and meet its long-term objectives. He firmly believes that with the help of innovative technologies, solidified partnerships and a dedicated team, Sorrento will be able to create and commercialize products that can create a significant impact in the global biopharmaceutical space.