Sorrento Therapeutics news for Friday concerning a new equity offering has SRNE stock falling hard.
Sorrento Therapeutics (NASDAQ:SRNE) notes that it will be making a public offering of its common stock. It will also be offering Series A, Series B and Series C warrants to purchase shares of its common stock. The company will be selling these shares an accompany warrants for $3.00 each.
The Sorrento Therapeutics news release notes that the company is planning to use funds from this public offering for a variety of purposes. This includes “continued clinical development of its RTX, CEA CAR-T and CD38 CAR-T programs and general research and development, working capital and general corporate purposes.”
The public offering from Sorrento Therapeutics includes 8,333,334 shares of SRNE stock and Series A, Series B and Series C warrants to purchase an aggregate of 8,333,334 shares of SRNE stock. Underwriters of the offer will also have the option of purchasing an additional 15% of shares and or warrants in the public offering.
The Sorrento Therapeutics news also includes the restrictions on the warrants. This includes the Series A warrants being exercisable six months after purchase for a price of $3.75 and expire after 10 years.
As for the Class B warrants, they are exercisable at the time of issuance for $3.00 and expire nine months after that date. The Class C warrants are exercisable after purchase for $3.75 and expire after 10 years. This warrants also require that the corresponding Class B warrant be exercised.
The public offering is expected to last through July 2.
SRNE stock was down 18% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
