Company: SCLXW
Filing Date: 2025-02-26
Form Type: PRER14A
Source: 0001193125-25-036730
Chunk: 17

Company: Scilex Holding Co
Filing Date: 2025-02-26
Form: PRER14A
Chunk 17
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 rules of Nasdaq and to avoid, or at least mitigate, the likely adverse consequences of the Common Stock being delisted from the Nasdaq Capital Market by producing the immediate effect of increasing the bid price of the Common Stock. 10

| 2. | Stock Price Volatility. We understand that a higher stock price may increase the acceptability of the                                                                                     
 Common Stock to investors who may not find shares of Common Stock attractive at the current market price due to the trading volatility often associated with stocks below certain prices. |

| 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