SAN DIEGO, Feb. 18, 2023 (GLOBE NEWSWIRE) — Sorrento Therapeutics, Inc. SRNE “Sorrento”))) today issued an IRS Form 8937 (the “Form 8937”) to supplement the previously issued “Frequently Asked Questions” document in the “Investors” section of its website www.sorrentotherapeutics.com as to its recent dividend to Sorrento shareholders of Scilex Holding Company (“Scilex”) common stock previously held by Sorrento.

Form 8937 has been filed with the Internal Revenue Service and Sorrento expects in the coming days to send copies of the form to brokerage firms, banks, dealers and similar organizations to which a dividend confirmation was previously distributed by Scilex’ transfer agent Continental Stock Transfer – and trust company.

After the close of trading on the Nasdaq Capital Market on January 19, 2023, Sorrento issued a distribution totaling 76,000,000 Scilex common shares to record holders of Sorrento common stock. Sorrento made the distribution on a pro rata basis among its shareholders in accordance with each shareholder’s percentage ownership of Sorrento common stock as of the Record Date. The payout ratio was 0.1410127 of one Scilex common share for each Sorrento common share. Fractional Shares issued as part of the share distribution were paid in cash in lieu of the fractional Share distribution. At the time of filing Form 8937, Sorrento estimated that its current and accumulated income and earnings would not be sufficient to characterize the distribution as a dividend. Therefore, the estimate would provide that the distribution of Scilex common stock would be characterized as a return of capital with no dividends.

Sorrento shareholders are urged to consult their own tax advisors regarding the specific tax consequences of the distribution of Scilex common stock, including potential tax consequences under state, local and non-US tax laws. Sorrento offers the…