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Sorrento Therapeutics (SRNE) to distribute Scilex Holding (SCLX) via Stock Dividend

Publication Date: January 24, 2023

Update: April 3rd, 2024

On March 27th, 2024, the restriction on trading Scilex Holding (SCLX) stock was extended until September 30, 2024.

Update: December 4th, 2023

On September 11th, 2023, the restriction on trading Scilex Holding (SCLX) stock was extended until March 31st, 2024.

Update: September 8th, 2023

On August 28th, 2023, Sorrento Therapeutics (SRNE) filed a motion to extend the restriction of Scilex Holding (SCLX) stock until December 1, 2023.

Sorrento Therapeutics plans to complete a stock dividend on January 19th, 2023. All holders of SRNE will receive 0.1410127 share{s} of Scilex Holding (SCLX) for each SRNE share held at the close of trading on January 5th, 2023

Due to the restriction, you will be unable to sell the SCLX shares received until the restriction is removed. Restricted SCLX shares will not be visible in Cash App but you may review your holdings on your monthly statements.

You will find the restricted shares under Symbol:808CNT018 on your monthly statement.

When the restriction ends, shares of 808CNT018 will be removed from your account and replaced with the same number of regular,unrestricted SCLX shares. The unrestricted SCLX shares will be available in app once they are received and you will be able to sell those shares at that time.

To learn more about restricted shares, please see this article from the U.S. Securities and Exchange Commission [here] (

This will affect all SRNE shareholders. Due to this stock dividend, scheduled orders for SRNE will not be accepted between market close on January 18th, 2023 and market open on January 19th, 2023

How will this impact my holdings?

Your total number of SRNE shares will remain unchanged and you will receive 0.1410127 share{s} of SCLX for each SRNE share held.

This may lower the price of each SRNE share as a portion of SRNE’s value will transfer to the new company’s stock, SCLX.

Immediately after the stock dividend is issued, your combined positions in SRNE and SCLX will have a similar value to your original SRNE position.

For example: if you have 5 shares of SRNE stock, during this stock dividend, Sorrento Therapeutics will grant you 0.7050635 SCLX shares.

You will have 5 shares of SRNE and 0.7050635 shares of SCLX, which combined will have a similar value to your original 5 SRNE shares.

Note: Market fluctuations unrelated to the stock dividend may impact the value of these two positions during this time period.

How can I calculate the number of shares I will own?

To calculate the number of Scilex Holding shares that you will own after the stock dividend, follow the math below

Sorrento Therapeutics shares previously owned x 0.1410127 = New amount of Scilex Holding shares you will receive.

For example:

  • Before the spin-off you owned 5 shares of Sorrento Therapeutics.
  • Use the equation above (5 previously owned shares x 0.1410127)
  • You now own 0.7050635 shares of Scilex Holding and continue to own your original position of 5 shares of Sorrento Therapeutics.

If you have more questions regarding this spin-off and how it may affect shares you’re holding, please refer to Sorrento Therapeutics’s Investor Relations website.

Selling shares may have tax implications. If you have questions about your particular tax situation you should consult a tax advisor.

Brokerage services by Cash App Investing LLC, member FINRA/SIPC, and a subsidiary of Block, Inc. Investing involves risk; you may lose money. For additional information about risks, see the Investing Disclosures and the Disclosure Library.

Cash App Investing is a self-directed service; you are solely responsible for orders placed through your account. Cash App Investing does not provide investment advice or recommendations. For additional information regarding the unique risks and limitations of fractional shares, please see your Investing Customer Account Agreement

Customers are advised that stock and cash movements associated with corporate action events may not be visible in app immediately following the event’s effective date. While most events are visible after a short period, some may require up to 7 business days to reflect accurately in the customer’s Investing holdings and Cash App balance.


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