Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 164

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 164
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, included changes to U.S. federal tax rates, imposed significant additional limitations on the deductibility of interest, allowed for the expensing of capital expenditures, and put into effect the migration from a
“worldwide” system of taxation to a modified territorial system.

On March 27, 2020, then-President Trump signed into law
the CARES Act, which included certain changes in tax law (including to the TCJA) intended to stimulate the U.S. economy in light of the COVID-19 pandemic, including temporary beneficial changes to the
treatment of net operating losses, interest deductibility limitations and payroll tax matters. On August 16, 2022, former President Biden signed the IRA into law, which contained certain tax measures, including a corporate alternative minimum
tax of 15% on some large corporations, an excise tax of 1% on certain corporate stock buy-backs, and an excise tax with respect to certain drug sales for failing to offer a price that is not equal to or less
than the negotiated “maximum fair price” under the law or for taking price increases that exceed inflation.

Many provisions of
the TCJA expire at the end of 2025 or are modified beginning in 2026. The U.S. Congress and the current administration have indicated that they intend to pursue legislation in 2025 to make permanent the 2017 TCJA provisions but there is no guarantee
that this initiative will be successful. Future changes in tax laws could have a material adverse effect on our business, cash flow, financial condition or results of operations. The impact of these tax reforms on holders of our Common Stock is
uncertain and could be adverse. We urge our stockholders to consult with their legal and tax advisors with respect to such legislation and the potential tax consequences of investing in our Common Stock.

Our Warrants are exercisable for our Common Stock, which would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.

As of March 31, 2025, we have 6,958,309 SPAC Warrants (as defined below) outstanding, which
are currently exercisable for an aggregate of up to 198,810 shares of our Common Stock in accordance with the terms of the Warrant Agreement, dated as of January 6, 2021, between Continental, as warrant agent, and Vickers, governing those
securities. The exercise price of these SPAC Warrants is $402.50