Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119846
Chunk: 426

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 426
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 should not be a taxable event. Nevertheless, a U.S. Holder of SPAC Warrants would be treated as receiving a constructive distribution from us if, for example, the adjustment increases the holder’s proportionate interest in our
assets or earnings and profits (e.g., through an increase in the number of shares of Common Stock that would be obtained upon exercise) as a result of a distribution of cash to the holders of shares of our Common Stock which is taxable to such
holders as a distribution. Such constructive distribution would be subject to tax as described above under “U.S.Holders — Taxation of Distributions” in the same manner as if such U.S. Holder received a
cash distribution from us on Common Stock equal to the fair market value of such increased interest.

Non-U.S. Holders

Taxation of Distributions

In
general, any distributions (including constructive distributions) we make to a Non-U.S. Holder of shares of our Common Stock, to the extent paid out of our current or accumulated earnings and profits (as
determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes under the same rules as described above under “U.S. Holders — Taxation of Distributions” and
“U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock” and, provided such dividends are not effectively connected with the
Non-U.S. Holder’s conduct of a trade or business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E, as applicable). Special certification and other requirements apply to certain Non-U.S. Holders that are pass-through entities rather than corporations or individuals. In the case of any constructive dividend (as described below under
“Non-U.S.Holders — Possible Constructive Distributions”), it is possible that this tax would be withheld from any amount owed to a
Non-U.S. Holder by the applicable withholding agent, including cash distributions on other property or sale proceeds from SPAC Warrants or other property subsequently paid or credited to such holder. Any
distribution not constituting a dividend will be treated first as reducing (but not below zero)