Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119846
Chunk: 429

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 429
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 a rate of 15% of the amount realized upon such disposition. Non-U.S. Holders are urged to consult their tax advisors regarding the application of these rules.

Possible Constructive Distributions

The terms of each SPAC Warrant provide for an adjustment to the number of shares of Common Stock for which the SPAC Warrant may be exercised or
to the exercise price of the SPAC Warrant in certain events, as discussed in the section of this prospectus titled “Description of Our Securities — SPAC Warrants”. An adjustment which has the effect of preventing dilution
generally should not be a taxable event. Nevertheless, a Non-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. A Non-U.S. Holder would be subject to U.S. federal income tax withholding as described above under “Non-U.S.Holders — Taxation of Distributions” under that section in the same manner as if such Non-U.S. Holder received a cash
distribution from us on Common Stock equal to the fair market value of such increased interest.

Foreign Account Tax Compliance Act

Under Sections 1471 to 1474 of the Code and the Treasury Regulations and administrative guidance promulgated thereunder (commonly
referred to as the “Foreign Account Tax Compliance Act” or “FATCA”) a 30% withholding tax generally applies with respect to certain dividends in respect of and, subject to the proposed Treasury Regulations described below,
gross proceeds from a sale or disposition of, securities which are held by or through certain foreign financial institution (including investment funds), unless any such institution (a) enters into, and complies with, an agreement with the IRS
to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned by certain U.S. persons and by certain non-U.S. entities that are
wholly or partially owned by U.S. persons and to withhold on certain payments, or (b) if required under an intergovernmental agreement between the United States and an applicable foreign country, reports such information to its local tax
authority, which will exchange such