Company: SCLXW
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-039223
Chunk: 17

Company: Scilex Holding Co
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 17
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| 3. | Transaction Costs. Investors also may be dissuaded from purchasing stocks below certain prices                                   
 because the brokerage commissions, as a percentage of the total transaction value, tend to be higher for such low-priced stocks. |

| 4. | Stock Price Requirements. We understand that many brokerage houses and institutional investors have                                                                 
 internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced 
 stocks to their customers or by restricting or limiting the ability to purchase such stocks on margin.                                                              |

Board Discretion to Implement or Abandon Reverse Stock Split If the Reverse Stock Split is approved by the Company’s stockholders at the Special Meeting, the actual Reverse Stock Split will be effected, if at all, only upon a subsequent determination by the Board that the Reverse Stock Split is, at such time, in the best interests of the Company and its stockholders. Such determination will be based upon many factors, which are described in the following section. Notwithstanding approval of the Reverse Stock Split by the stockholders, the Board may, in its sole discretion (without further action by our stockholders), abandon any proposed amendment to the Certificate of Incorporation and determine, prior to the effectiveness of any filing with the Delaware Secretary of State, not to effect the Reverse Stock Split, as permitted under Section 242(c) of the General Corporation Law of the State of Delaware (the “DGCL”). By voting in favor of the Reverse Stock Split, you are also expressly authorizing the Board to determine not to proceed with, and to abandon, the Reverse Stock Split if it should so decide. If the Board decides not to implement any of the Reverse Stock Split on or before March 19, 2026, further stockholder approval would be required prior to implementing any reverse stock split. Criteria to be Used for Decision to Effect a Reverse Stock Split If the stockholders approve the Reverse Stock Split, the Board will be authorized to proceed with the Reverse Stock Split in its sole discretion. In determining whether to proceed with the Reverse Stock Split, the Board expects to consider a number of factors, including market conditions, existing and expected trading prices of the Common Stock, our actual and projected financial performance, the Nasdaq Capital Market listing requirements, our additional funding requirements, overall trends in the stock market, business developments, and the amount of our authorized but unissued Common Stock. The Board does not intend for this transaction to be the first step in a series of plans or proposals of a “going