Sorrento Therapeutics issues Chairman/CEO corporate update to stockholders
Dear Sorrento Stockholders,
It is with pride that I issue this mid-year update letter to our shareholders. Since the beginning of 2018, we have been working diligently on the implementation of our current plans and have made noteworthy progress on multiple fronts.
- Closing of financing adjusted to
$38M(versus $120.5Mprior announcement) – June 13th, 2018
The notes will be convertible into shares of Sorrento common stock at a price of
$7.0125per share and will accrue interest at a rate of 5% per year. Each purchaser of the convertible notes will also receive a warrant to purchase 50% of the number of shares of Sorrento common stock into which such purchaser’s note is initially convertible. The warrants have an exercise price of $8.77per share, or 125% of the initial conversion price of the notes. Following the closing, we expect to have approximately $50mcash on hand to execute our business plan for the remainder of 2018. We decided to lower the final amount for this convertible note financing with the intent to limit shareholder dilution. Considering recent progress in our potential strategic partnership discussions and non-dilutive financing pursuits, we feel confident that this level of financing should be appropriate for our current business needs.
- Sorrento to be included in the FTSE Russell 3000®/2000® indexes -
June 25th, 2018
Effective as of the opening of the U.S. markets on
Monday, June 25, 2018, based on a preliminary list of additions to the index posted by FTSE Russell on Friday, June 8, 2018, our company’s shares (SRNE, Nasdaq) will be included in the aforementioned indices. The Company's addition to the Russell indices is part of FTSE Russell's annual index reconstitution process that is done to reflect prior year changes in the ever-evolving global equity markets. We are encouraged by this inclusion to the Russell indices and expect trading liquidity of our shares and institutional ownership base may strengthen as a result.
- HKSE/Nasdaq dual listing for
Sorrento Therapeutics Inc.– by Q1 2019
We have taken into consideration multiple parameters and decided to pursue the corporate entity listing versus a subsidiary spin-out on the
Hong Kong stock exchange. We believe our shareholders will be best served by not separating our core immuno-oncology development assets and simplifying our organizational structure. We will seek to be listed by the first quarter of 2019.
- SCILEX ZTlido™ (lidocaine topical system) 1.8%commercialization – Q4 2018
Our majority owned subsidiary is building up a commercial support organization for the launch of its recently approved lidocaine topical system, ZTlido, in the US, expected to be operational in the fourth quarter of 2018, while progressing on international strategic partnerships for ex-US territories. Scilex is also pursuing a non-dilutive royalty-based financing to independently support the commercial launch.
- Development projects and clinical trials continue to advance on planned target dates.
Our main development projects are progressing as planned. Clinical trials are being set-up for patient inclusion in CD38 CAR-T in refractory or relapsing multiple myeloma and RTX for osteoarthritis knee pain. We continue expanding our program pipeline with new IND enabling data generation (pre-clinical) in particular, in the areas of monoclonal antibody (PD-L1, in phase 1 trials in S. Korea and
China) and CAR (BCMA) technologies.
As a team, we have reached some key milestones in the first half of 2018 (
Chairman and CEO,
Sorrento is a clinical stage, antibody-centric, biopharmaceutical company developing new therapies to turn malignant cancers into manageable and possibly curable diseases. Sorrento's multimodal multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as fully human antibodies (“G-MAB™ library”), clinical stage immuno-cellular therapies (“CAR-T”), intracellular targeting antibodies (“iTAbs”), antibody-drug conjugates (“ADC”), and clinical stage oncolytic virus (“Sephrevir®”).
Sorrento's commitment to life-enhancing therapies for cancer patients is also demonstrated by our effort to advance a first-in-class (TRPV1 agonist) non-opioid pain management small molecule in Resiniferatoxin (“RTX”) and ZTlido. Resiniferatoxin is completing a phase IB trial in terminal cancer patients. ZTlido was approved by US FDA on
For more information visit www.sorrentotherapeutics.com
The notes, warrants and shares issuable upon conversion of the notes and exercise of the warrants have not been registered under the Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction, and may not be offered or sold in
This letter to the stockholders of
Media and Investor Relations
Sorrento® and the Sorrento logo are registered trademarks of
ZTlido™ and G-MAB™ are trademarks owned by
Seprehvir®, is a registered trademark of Virttu Biologics Limited, a wholly-owned subsidiary of
All other trademarks are the property of their respective owners.
Source: Sorrento Therapeutics, Inc.