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Thursday, Mar 28, 2024
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Stock Offering Shakes Investors Confidence in Sorrento Therapeutics

Stock is tanking for local drugmaker Sorrento Therapeutics Inc. following news that it intends to raise $47 million in a public stock offering.

The company is selling 23.6 million shares of its common stock at $2 per share, and is also offering the underwriters an option to purchase an additional 3.5 million shares.

The announcement has shaken shareholders concerned about dilution, with Sorrento’s stock price falling nearly 40 percent following the news. The company’s stock was trading at $1.80 per share by mid-afternoon on Thursday.

Sorrento is a clinical-stage company developing antibody treatments for cancer, inflammation and autoimmune diseases. The company has raised a lot of capital over the past year, securing a $75 million loan last November and $150 million from a private placement of common stock and warrants last summer.

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