Scilex raises $20.3 million through warrant exercise

Scilex Holding Company (NASDAQ: SCLX) completed the exercise of existing warrants, generating approximately $20.3 million in gross proceeds before fees and expenses, according to a company statement.

The pharmaceutical company exercised 428,572 warrants originally priced at $38.50 per share from April 2024 and 475,824 warrants originally priced at $22.72 per share from December 2024, both at a reduced exercise price of $22.51 per share.

In exchange for the immediate cash exercise of the existing warrants, Scilex issued a new warrant allowing the purchase of up to 1,356,594 shares at $29.00 per share. The new warrant can be exercised immediately and expires five years from issuance.

Rodman & Renshaw LLC and StockBlock Securities LLC served as exclusive placement agents for the transaction. The new warrant was offered through a private placement under Section 4(a)(2) of the Securities Act and has not been registered with securities regulators.

Scilex stated it expects to use the net proceeds for working capital and general corporate purposes. The company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of shares issuable upon exercise of the new warrant.

The Palo Alto-based company develops non-opioid pain management products for acute and chronic pain treatment. Its commercial portfolio includes ZTlido for neuropathic pain, ELYXYB for migraine treatment, and Gloperba for gout prevention.

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