Sorrento Therapeutics (SRNE) Stock Pops On PE Offer

Seelos Therapeutics SEEL Stock News

Sorrento Therapeutics Inc (NASDAQ: SRNE) is screaming for the top in the market this morning, trading on gains of more than 40%. The gains come after the company announced that it was approached by a private equity firm that’s interested in taking the company over. Should the deal happen, there’s plenty more room for profits. Here’s what’s going on:

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SRNE Stock Rockets On Private Equity Offer

In a premarket press release this morning, Sorrento Therapeutics announced that it has been approached by a private equity firm. The firm, who has not been named as of yet is interested in acquiring the company.

In the release, SRNE said that it received a non-binding proposal from the private equity fund with the intention to acquire a majority or all of the issued and outstanding shares of the company. Should the company take the offer, it is valued at $7.00 per share, a premium of more than 100% compared to yesterday’s closing price.

In the release, SRNE said that it plans on carefully reviewing the proposal. In doing so, it will bring in its advisors to determine the best course of action. The company said that its goal, as is normally the case, is to act in the best interest of itself and its shareholders.

Of course, as mentioned above, the proposal is non-binding and no deal is taking place as of yet. While there may be a conversation taking place, it’s important to consider what would happen if SRNE were not taken over if you decide to buy shares on this news.

This Takeover Would Be A Win For All

At the end of the day, it’s hard to think of a reason that SRNE would turn down a deal like this. The truth of the matter is that acquisitions happen all the time. However, acquisitions with a more than 100% premium are hard to come by.

Considering the work that the company has been doing, and the size of the offer, if the proposal is real, in my view, there’s a strong argument that a takeover is just around the corner.

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