Company: SCLXW
Filing Date: 2025-02-26
Form Type: PRER14A
Source: 0001193125-25-036730
Chunk: 15

Company: Scilex Holding Co
Filing Date: 2025-02-26
Form: PRER14A
Chunk 15
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 proposed Reverse Stock Split will not have the effect of increasing the Company’s equity market capitalization, we believe that implementing the Reverse Stock Split could provide benefits to the Company and our existing stockholders in a number of ways, including:

| 1. | Maintain our listing on the Nasdaq Capital Market. Our Common Stock is traded on the Nasdaq                                                                                                                                       
 Capital Market. On November 1, 2024, we received a notice from Nasdaq indicating that, for the last 30 consecutive business days, the bid price for the Common Stock had closed below the minimum $1.00 per share requirement for 
 continued listing on the Nasdaq Capital Market under Nasdaq Listing                                                                                                                                                               |

9

| Rule 5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A)(ii), we have been provided an initial period of 180 calendar days, or until April 30, 2025, to regain 
 compliance with the minimum bid price requirement.                                                                                                                          |

As of the date hereof, we have not regained compliance with the minimum bid price requirement since the closing bid price of the Common Stock has not been at least $1.00 per share for a minimum of 10 consecutive business days. To cure the deficiency, we may conduct the Reverse Stock Split for which we are seeking stockholder approval in this Proxy Statement. On February , 2025, the closing price of the Common Stock as reported on the Nasdaq Capital Market was $ per share. Our Board has approved the Reverse Stock Split as a potential means of increasing the share price of the Common Stock and may choose to implement it if other options are unavailable, undesirable, or insufficient. Our Board believes that maintaining our listing on the Nasdaq Capital Market provides a broader market for the Common Stock and facilitates the use of the Common Stock in financing and other transactions. We expect the Reverse Stock Split, if effected, to facilitate the continuation of such listing. We cannot assure you, however, that the Reverse Stock Split, if effected, will result in an increase in the per share price of the Common Stock, or if it does, how long the increase would be sustained, if at all, or whether the increase will be proportional to the reverse stock split ratio. If our stockholders approve the Reverse Stock Split Proposal, our Board in its sole discretion will determine whether to effect the Reverse Stock Split. Our Board reserves the right to elect not to effect a reverse stock split, including any or all reverse stock split ratios within the proposed