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Sorrento Stock Slumps 13.5% In After-Hours Trading After It Fires CFO

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Sorrento Stock Slumps 13.5% In After-Hours Trading After It Fires CFO

Shares of Sorrento Therapeutics Inc (NASDAQ: SRNE) traded 13.5% lower in after-hours trading on Tuesday as a reaction to the company firing its Chief Financial Officer Jiong Shao.

What Happened: Sorrento Therapeutics, a biotech drug manufacturer in a filing with the Securities and Exchange Commission stated that Shao is "terminated in its entirety, effectively immediately." Further, the company announced it has appointed Najjam Asghar as its new CFO.

Asghar has already been performing the role of chief accounting officer for the company since June 2019.

Why It Matters: Shao’s termination comes as the company deals with short seller Hindenburg Research.

In May, Sorrento rolled with its news of high potential and rapid COVID-19 Slyvia testing, which led the stock to be up 263% year to date. The conflict with short sellers over allegations of potential manipulation had created questions on the credibility of the company and its testing process.

Price Action: Shares of Sorrento Therapeutics gained 1.5% on Tuesday to close trading at $12.28 before losing over 13% in after-hours trading.

Editor's note: A previous version of this article incorrectly implied Shao was associated with Hindenburg Research.

 

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Posted-In: Coronavirus Covid-19 Hindenburg ResearchBiotech News Health Care Management General Best of Benzinga

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