Company: SCLXW
Filing Date: 2025-12-16
Form Type: S-1
Source: 0001193125-25-319720
Chunk: 34

Company: Scilex Holding Co
Filing Date: 2025-12-16
Form: S-1
Chunk 34
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 of the net proceeds to purchase additional bitcoin, Ethereum, BNB, Doge, and/or other blockchain-linked cryptocurrencies in accordance with our treasury strategy. Cryptocurrency is a highly volatile asset. Cryptocurrency does not pay interest, but if management determines to stake the cryptocurrency tokens in treasury, rewards can be earned on cryptocurrency. The ability to generate a return on investment from the net proceeds will depend on whether there is appreciation in the value of Ethereum, bitcoin, BNB, Doge, and other blockchain-linked cryptocurrencies following our purchases of such cryptocurrency with the net proceeds from this offering by the Company and whether the Company is successful in pursuing other strategies to create income streams or otherwise generate funds using its cryptocurrency holdings. Future fluctuations in Ethereum’s, bitcoin’s, BNB’s, Doge’s, and other blockchain-linked cryptocurrencies’ trading prices may result in our converting cryptocurrency purchased with the net proceeds of this offering into cash with a value substantially below the net proceeds from such an offering.**

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**Significant holders or beneficial holders of our Common Stock may not be permitted to exercise the Exchange Warrants, September 2025 Warrants, or November 2025 Warrants.

The terms of the Exchange Warrants, September 2025 Warrants, and November 2025 Warrants prohibit a holder (together with its affiliates) from exercising such warrant to the extent that immediately after giving effect to such exercise, the holder would own more than 4.99% of our outstanding Common Stock, provided that, at the election of the holder, such beneficial ownership limitation may be increased or decreased to a percentage not to exceed 9.99% of our outstanding Common Stock upon 61 days’ notice to us. As a result, if you hold a significant amount of our securities, you may not be able to exercise such warrant for shares of our Common Stock, in whole or in part, at a time when it would be financially beneficial for you to do so.

We may not have sufficient resources to repurchase the Exchange Warrants, September 2025 Warrants or November 2025 Warrants.

Under certain circumstances, in the event of a fundamental transaction, as described in the Exchange Warrants, September 2025 Warrants, and November 2025 Warrants, the respective holders thereof may each require us or our successor entity in such transaction to repurchase the remaining unexercised portion of such warrants for an amount of cash equal to the value of such warrant as determined in accordance with the Black