Sorrento Therapeutics Inc (SRNE)

[James salmon]

NK share price up over 30% this morning;


“On December 21, 2020, ImmunityBio, Inc. (“ImmunityBio”), a privately-held immunotherapy company, and NantKwest, Inc. (Nasdaq: NK) (“NantKwest”) issued a press release announcing that they have entered into an agreement to merge in a stock-for-stock transaction (the “Press Release”).

Sorrento Therapeutics, Inc. (the “Company”) currently owns 10,000,000 shares of common stock of Immunity Bio.

According to the Press Release, the transaction is structured as a tax-free 100% stock-for-stock merger, with ImmunityBio to reverse merge with NantKwest. The Press Release also stated that, under the terms of the agreement, ImmunityBio shareholders will receive a fixed exchange ratio of 0.8190 shares of NantKwest for each share of ImmunityBio owned. According to the Press Release, upon completion of the transaction, on a fully diluted basis, ImmunityBio shareholders will own approximately 72% of the combined company and NantKwest shareholders will own approximately 28% of the combined company, on a fully diluted basis.

The transaction, which, according to the Press Release, is expected to close in the first half of 2021”