What is going on with SRNE and SCLX?

Submitted by Personal_Operation89 t3_10mqur7 in wallstreetbets

For a while, SCLX was a wholly owned subsidiary of SRNE, then thru SPAC, SCLX went public. SRNE owned 130M shares of SCLX. 1 1/2 weeks ago, SRNE passed 70M shares of SCLX as dividends to its shareholders, and still owns 60M shares of SCLX. Today SCLX is at $9.28 ($1.31B market cap) and SRNE $1.02 ($558M market cap). SRNE's 60M shares of SCLX valued at $556.8M. What is wrong here?

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VisualMod t1_j64jd2m wrote

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VisualMod t1_j64jdtg wrote

>There is nothing wrong here. SRNE's share price has been depressed due to the recent market sell-off, but its subsidiary SCLX has held up relatively well. Given that SRNE still owns 60 million shares of SCLX, it seems like the market is undervaluing both companies at present.

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