Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 150

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 150
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 securities or industry analyst coverage, if any of the analysts who cover it issues an adverse opinion regarding the Company, our business model,
our intellectual property or our stock performance, or if our clinical trials and operating results fail to meet the expectations of analysts, our stock price would likely decline. If one or more of these analysts cease coverage of the Company or
fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.

Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to ZTlido or our product candidates.

We may issue additional equity securities to fund future expansion and pursuant to equity incentive or
employee benefit plans. We may also issue additional equity for other purposes. These securities may have the same rights as our Common Stock or, alternatively, may have dividend, liquidation or other preferences to our Common Stock. The issuance of
additional equity securities, whether upon conversion of the Tranche B Notes into Common Stock or otherwise, will dilute the holdings of existing stockholders and may reduce the share price of our Common Stock.

Pursuant to the Equity Incentive Plan, which became effective on November 9, 2022, we are authorized to grant equity awards to our
employees, directors and consultants. In addition, pursuant to the ESPP, which became effective on November 9, 2022, we are authorized to sell shares to our employees. Further, pursuant to the Inducement Plan, which was adopted on
January 17, 2023, we are authorized to grant equity awards to individuals as a material inducement to join the Company. A total of 703,670 shares of Common Stock (which number of shares accounts for the automatic annual increase on
January 1, 2025), 170,573 shares of Common Stock (which number of shares accounts for the annual increase on January 1, 2025) and 40,000 shares of our Common Stock have been reserved for future issuance under the Equity Incentive Plan, the
ESPP and the Inducement Plan, respectively. In addition, the Equity Incentive Plan and ESPP provide for annual automatic increases in the number of shares reserved thereunder, in each case, beginning on January 1, 2023. As a result of such
annual increases, our stockholders may experience additional dilution, which could cause the price of