PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a company specializing in non-opioid pain management solutions, has announced a definitive agreement with certain institutional investors for a registered direct offering.
This transaction involves the sale of 15 million shares of common stock, alongside warrants to purchase an additional 15 million shares, with the offering expected to close on or about April 25, 2024, subject to customary closing conditions.
The shares and accompanying warrants are priced at $1.00 per share, with the warrants exercisable at $1.10 per share six months from the date of issuance and expiring five years after issuance. Rodman & Renshaw LLC is serving as the exclusive placement agent for the offering.
Scilex anticipates gross proceeds of approximately $15 million before accounting for placement agent fees and other offering expenses. The company plans to allocate the net proceeds towards working capital and general corporate purposes.
These may include capital expenditures, commercialization and research and development activities, regulatory affairs, clinical trials, potential acquisitions of new technologies or investments, business combinations, and the repayment or refinancing of existing debts or capital stock.
The securities are offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on December 22, 2023, and declared effective on January 11, 2024. A prospectus supplement and accompanying prospectus detailing the offering terms will be filed with the SEC and made available on their website.
Scilex's portfolio includes FDA-approved products for pain management, such as ZTlido® for postherpetic neuralgia pain relief and ELYXYB® for acute migraine treatment. The company is also preparing to launch Gloperba®, a liquid oral gout medication, in the first half of 2024. Additionally, Scilex is advancing its product candidates, including SP-102, SP-103, and SP-104, targeting various pain conditions.
This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering is only valid in jurisdictions where it would not be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
InvestingPro Insights
In light of Scilex Holding Company's recent announcement regarding its registered direct offering, a glance at the company's financial health and market performance offers valuable context. According to real-time data from InvestingPro, Scilex operates with a market capitalization of approximately $103.65 million.
Notably, the company's revenue has grown by 22.9% over the last twelve months as of Q4 2023, indicating a positive trajectory in sales. This aligns with one of the InvestingPro Tips that analysts anticipate sales growth in the current year.
Still, the company's financial challenges are also apparent. Scilex's P/E ratio stands at -0.66, reflecting its current lack of profitability. This is further supported by another InvestingPro Tip, which indicates that analysts do not expect the company to be profitable this year.
Moreover, Scilex's stock price has experienced significant declines, with a 1-year price total return of -86.55% as of the latest data, suggesting that investor confidence may be wavering.
It is important for potential investors to consider these factors in the context of the company's strategic plans for the capital raised through the offering. For those seeking a more comprehensive analysis, InvestingPro offers additional insights, including 12 more InvestingPro Tips for Scilex, which can provide a deeper understanding of the company's financial position and market potential. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research with valuable information.
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