Sorrento Therapeutics Inc SRNE shares are rising on Wednesday after the U.S. Bankruptcy Court granted interim approval of the company's $75 million debtor-in-possession financing.
What To Know: The financing approval comes in connection with Sorrento's bankruptcy filling, which took place on Feb. 13 when Sorrento and its subsidiary, Scintilla Pharmaceuticals, commenced voluntary proceedings under chapter 11.
The financing will provide Sorrento with immediate liquidity so it will be able to continue operating its business as usual during its chapter 11 case. A hearing for final approval of the financing is currently expected to take place on March 29.
"We are pleased to have received approval from the Court for this financing, which will ensure Sorrento has the liquidity and ability to continue normal business operations, including the payment of employee wages and benefits and post-petition vendor obligations," said Dr. Henry Ji, chairman and CEO of Sorrento.
Sorrento is a biopharmaceutical company dedicated to the development of life-saving therapeutics to treat cancer, intractable pain and infectious disease. As of its chapter 11 filing, the company had approximately $1 billion in assets.
SRNE Price Action: Sorrento hit new 52-week lows after filing for bankruptcy earlier this month.
The stock was up 18.3% at 46 cents Wednesday morning, according to Benzinga Pro.
Photo: fernando zhiminaicela from Pixabay.
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