Company: SCLXW
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001193125-25-115095
Chunk: 431

Company: Scilex Holding Co
Filing Date: 2025-05-07
Form: POS AM
Chunk 431
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 value of the SPAC Warrants deemed surrendered to satisfy the exercise price and the U.S. Holder’s adjusted tax basis in such surrendered SPAC Warrants. In this case, a U.S. Holder’s initial tax basis in the Common Stock received would equal the sum of the exercise price and the U.S. holder’s adjusted tax basis in the SPAC Warrants exercised. It is unclear whether a U.S. Holder’s holding period for the Common Stock would commence on the date of exercise of the SPAC Warrant or the day following the date of exercise of the SPAC Warrant; in either case, the holding period would not include the period during which the U.S. Holder held the SPAC Warrant. Due to the uncertainty and absence of authority on the U.S. federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect to the Common Stock received, U.S. Holders are urged to consult their tax advisors regarding the tax consequences of a cashless exercise.

Sale, Exchange, Redemption or Expiration of a SPAC Warrant

Upon a sale, exchange (other than by exercise), 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”