Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 419

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 419
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 Warrants are treated as our stock.

Our position with
respect to the U.S. federal income tax characterization of the Penny Warrants is not binding on the IRS and the IRS may treat the Penny Warrants as warrants to acquire our common stock for U.S. federal income tax purposes and, if so, the
amount and character of your gain with respect to an investment in the Penny Warrants could change. You should consult your tax advisor regarding the characterization of Penny Warrants for U.S. federal income tax purposes, and the consequences
to you of an investment in the Penny Warrants based on your own particular facts and circumstances.

U.S. Holders

Taxation of Distributions

If we
pay distributions or make constructive distributions (other than certain distributions of our stock or rights to acquire our stock) to U.S. Holders of shares of our Common Stock, such distributions generally will constitute dividends for
U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of our current and accumulated earnings and profits
will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax basis in our Common Stock. Any remaining excess will be treated as gain realized on the sale or other
disposition of the Common Stock and will be treated as described under “U.S.Holders-Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock” below.

Dividends we pay to a U.S. Holder that is a taxable corporation will generally qualify for the dividends received deduction if the
requisite holding period is satisfied. With certain exceptions (including dividends treated as investment income for purposes of investment interest deduction limitations), and provided certain holding period requirements are met, dividends we pay
to a non-corporate U.S. Holder will generally constitute “qualified dividends” that will be subject to tax at the preferential tax rate accorded to long-term capital gains. Non-corporate U.S. Holders that do not meet a minimum holding period requirement or that elect to treat the dividend income as “investment income” pursuant to Section 163(d)(4) of the Code
(dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation applicable to qualified dividends. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is
obligated to make