SRNE - Sorrento in credit agreement with B. Riley for $41.7M
- Sorrento Therapeutics ( NASDAQ: SRNE ) announced on Friday a bridge loan agreement under which the company has borrowed ~$41.7M from B. Riley at 6% per annum interest.
- Per the agreement signed on Friday, SRNE has paid B. Riley 1% of the principal amount of the credit agreement for services delivered in connection with arranging the loan, which matures on Jan. 31, 2023.
- The agreement requires the company and subsidiaries to meet certain covenants, including limits on asset sales and restrictions on taking additional debt.
- SRNE reported ~$70.3M in cash and equivalents as of Q2 2022, indicating a ~92% rise from 2021 year-end.
- Seeking Alpha contributor SimOne Trading argues that the SRNE's COVID-19 antigen test COVISTIX did not generate sales in Q2 2022 and highlights its importance in generating cash flows to support the company's future growth.
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Sorrento in credit agreement with B. Riley for $41.7M