ImmunityBio's (IBRX) NantCell Statement on Sorrento's (SCLX) Failure to Pay Settlement

As previously disclosed, on August 14, 2023, the United States Bankruptcy Court for the Southern District of Texas issued an order approving the settlement involving Sorrento Therapeutics, Inc.’s (“Sorrento”) litigation claims against ImmunityBio (NASDAQ: IBRX) wholly-owned subsidiary NantCell, Inc. (“NantCell”) and others, such that the settlement is binding on the parties. The settlement is described in detail in the motion filed with the bankruptcy court on June 6, 2023 in In re Sorrento Therapeutics, Inc., et al., Case No. 23-90085 (DRJ), Docket Entry 810, and the accompanying order, Docket Entry 1205. As of 2:00 p.m. ET on August 31, 2023, Sorrento had not paid the judgments held by NantCell, and by NantCell’s joint venture with Sorrento, Immunotherapy NANTibody LLC (“NANTibody”), which were previously disclosed in the Company’s periodic reports, including its most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. Accordingly, pursuant to the terms of the settlement, NantCell and NANTibody intend to deliver a certification as described in the settlement confirming Sorrento’s failure to pay the aforementioned judgments no later than September 6, 2023, at which time the remaining components of the settlement under this scenario will be implemented effective immediately. Specifically, in relevant part to the Company and NantCell, a mutual release of claims will become effective such that the aforementioned judgments will be released and the litigation claims will be released including, without limitation, the derivative litigation pending against NantCell in the Superior Court of Los Angeles, Los Angeles County (the “Superior Court Litigation”), Sorrento will relinquish its interests in NANTibody, and Sorrento will forfeit its rights to any payments from NantCell arising out of its antibody exclusive license agreement with NantCell, including any royalties associated with the Company’s engineered NK cell therapy in Phase 2 clinical trials, PD-L1 t-haNK.

You May Also Be Interested In

• McCormick board member to resign after CFO appointment at Best Buy
• Pinterest CFO resigns, interim replacement named
• Target (TGT) files mixed shelf