If Ji paid them in anything but SRNE shares then he is irresponsible. Assuming he did it's also a good sign of positive things to come as he would have to disclose any material issues during due diligence. I assume SmartPharma's venture capital / PE backers would have looked at SRNE's stock value and potential before agreeing to the deal. If Ji misled them it's an automatic lawsuit which he loses.
Reaction of the market on such venture is about uncertainty of deal. Our CEO didn't disclose the financial side so now here are prevailing short traders and pull price down. We have nothing to do in such situation except of watching on the side and picking up discounted shares.
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