Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119846
Chunk: 425

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 425
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 redemption (other than a redemption for Common Stock), or expiration of a SPAC Warrant, a
U.S. Holder will recognize taxable gain or loss in an amount equal to the difference between (1) the amount realized upon such disposition or expiration and (2) the U.S. Holder’s adjusted tax basis in the SPAC Warrant. A
U.S. Holder’s adjusted tax basis in its SPAC Warrants will generally equal the U.S. Holder’s acquisition cost, increased by the amount of any constructive distributions included in income by

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such U.S. Holder (as described below under “U.S.Holders — Possible Constructive Distributions”).Such gain or loss generally will be treated
as long-term capital gain or loss if the SPAC Warrant is held by the U.S. Holder for more than one year at the time of such disposition or expiration. If a SPAC Warrant is allowed to lapse unexercised, a U.S. Holder will generally
recognize a capital loss equal to such holder’s adjusted tax basis in the SPAC Warrant. The deductibility of capital losses is subject to certain limitations.

A redemption of SPAC Warrants for Common Stock described in this prospectus under “Description of Our Securities — SPAC Warrants” should be treated as a “recapitalization” for U.S. federal income tax purposes. Accordingly, a U.S. Holder should not recognize any gain or loss on the redemption of SPAC Warrants for shares of our Common Stock. A
U.S. Holder’s aggregate initial tax basis in the shares of Common Stock received in the redemption should equal such U.S. Holder’s aggregate adjusted tax basis in the SPAC Warrants redeemed and the holding period for the shares of Common
Stock received in redemption of the SPAC Warrants should include the holding period for the surrendered SPAC Warrants. However, there is some uncertainty regarding this tax treatment and, accordingly, U.S. Holders should consult their tax
advisors regarding the tax consequences of a redemption of SPAC Warrants for Common Stock.

Possible Constructive Distributions

The terms of each SPAC Warrant provide for an adjustment to the number of shares of Common Stock for which the SPAC Warrant may be exercised or
to the exercise price of the SPAC Warrant in certain events, as discussed in the section of this prospectus titled “Description of Our Securities — SPAC Warrants”. An adjustment which has the effect of preventing dilution
generally