Scilex Holding Company Announces Closing of Exercise of Warrants for $20.3 Million Gross Proceeds

Core Viewpoint - Scilex Holding Company has successfully closed the exercise of existing warrants, generating approximately $20.3 million in gross proceeds, which will be used for working capital and general corporate purposes [1][4]. Group 1: Warrants and Proceeds - The company exercised two sets of existing warrants, totaling 904,396 shares, at a reduced exercise price of $22.51 per share [1]. - The April 2024 Warrants were originally priced at $38.50 per share, while the December 2024 Warrants had an exercise price of $22.72 per share [1]. - The gross proceeds from the exercise of these warrants were approximately $20.3 million before deducting fees and expenses [1]. Group 2: New Warrant Issuance - In exchange for the immediate cash exercise of the existing warrants, the company issued a new unregistered warrant for 1,356,594 shares at an exercise price of $29.00 per share, which is exercisable immediately and has a five-year term [3]. - The new warrant was offered in a private placement under Section 4(a)(2) of the Securities Act and Regulation D [5]. Group 3: Company Overview - Scilex is focused on acquiring, developing, and commercializing non-opioid pain management products for acute and chronic pain, as well as neurodegenerative and cardiometabolic diseases [8]. - The company's commercial products include ZTlido, ELYXYB, and Gloperba, which target significant unmet medical needs [9][10]. - Scilex has three product candidates in development, including SP-102, SP-103, and SP-104, which are aimed at various pain management indications [10].