Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119846
Chunk: 423

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 423
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1) the sum of the amount of cash and the fair market value of any property received in such
disposition and (2) the U.S. Holder’s adjusted tax basis in its Common Stock so disposed of. A U.S. Holder’s adjusted tax basis in its Common Stock will generally equal the U.S. Holder’s acquisition cost for such
Common Stock (or, in the case of Common Stock received upon exercise of a SPAC Warrant, the U.S. Holder’s initial basis for such Common Stock, as discussed below), less

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any prior distributions treated as a return of capital. The deductibility of capital losses is subject to limitations. Long-term capital gains recognized by
non-corporate U.S. Holders are generally eligible for reduced rates of tax. If the U.S. Holder’s holding period for the Common Stock so disposed of is one year or less, any gain on a sale or
other taxable disposition of the shares would be subject to short-term capital gain treatment and would be taxed at ordinary income tax rates. The deductibility of capital losses is subject to limitations. Any gain or loss recognized by a
U.S. Holder on the sale or exchange of our Common Stock will generally be treated as U.S. source gain or loss.

Exercise of a SPAC Warrant

Except as discussed below (with respect to the cashless exercise of a SPAC Warrant), a U.S. Holder generally will not
recognize taxable gain or loss upon the exercise of a SPAC Warrant for cash. The U.S. Holder’s initial tax basis in the share of our Common Stock received upon exercise of the SPAC Warrant will generally be an amount equal to the sum of
the U.S. Holder’s acquisition cost of the SPAC Warrant and the exercise price of such SPAC Warrant. It is unclear whether a U.S. Holder’s holding period for the Common Stock received upon exercise of the SPAC Warrant would
commence on the date of exercise of the SPAC Warrant or the day following the date of exercise of the SPAC Warrant; however, in either case the holding period will not include the period during which the U.S. Holder held the SPAC Warrants.

The tax consequences of a cashless exercise of a SPAC Warrant are not clear under current tax law. A cashless exercise may be nontaxable,
either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U.S.