Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119846
Chunk: 78

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 78
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 corresponding increase in our operational, financial and management systems could have a material adverse effect on our business, financial
condition and results of operations.

There is no assurance that we will complete the Semnur Business Combination with respect to the sale of our wholly owned subsidiary, Semnur, and/or our SP-102product candidate, under the terms of the Merger Agreement or otherwise and the failure to complete the Semnur Business Combination could adversely affect our stock price and future business and financial results.

As previously announced, our Board authorized our management to explore
ways in which to maximize the value of Semnur and SP-102 (SEMDEXA), the product candidate held by Semnur, for us and our stockholders, including by
way of conducting a spin-off, merger, dividend, reclassification or other similar transaction. On August 30, 2024, Semnur entered into an Agreement and Plan of Merger (as amended by that certain Amendment
No. 1 to Agreement and Plan of Merger, dated as of April 16, 2025, the “Semnur Business Combination Agreement”) with Denali Capital Acquisition Corp. (“Denali”) and Denali Merger Sub Inc., a Delaware corporation and
wholly owned subsidiary of Denali (“Denali Merger Sub”), in connection with the Semnur Business Combination (as defined below). The consummation of the Semnur Business Combination is subject to the satisfaction or waiver of a number of
closing conditions of the respective parties. The completion of the Semnur Business Combination is not assured and is subject to risks, including, among others, the risk that approval of the Semnur Business Combination by Denali’s shareholders
is not obtained or that other closing conditions are not satisfied. There is also no assurance the Semnur Business Combination will actually maximize the value of Semnur and/or the SP-102 asset for us or our
stockholders. In addition, we will remain liable for significant transaction costs, including legal, accounting and financial advisory fees. Furthermore, the market price of our Common Stock may reflect various market assumptions as to whether the
Semnur Business Combination will occur. Consequently, the failure to complete the Semnur Business Combination could result in a significant change in the market price of our Common Stock.

Our insurance policies are expensive and protect us only from some business risks, which leaves us exposed to significant uninsured liabilities.

Although we endeavor to obtain appropriate insurance coverage for insurable risks that we identify