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PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a firm engaged in the development and commercialization of non-opioid pain management products with a current market capitalization of $45.79 million, has declared a reverse stock split of its common stock at a 1-for-35 ratio, effective at the start of trading on April 15, 2025. This corporate action aims to ensure compliance with Nasdaq's minimum bid price requirement for continued listing. The move comes as the stock has declined significantly, with InvestingPro data showing a 68.36% drop over the past six months, though analysis suggests the stock may be undervalued at current levels.
The reverse stock split was approved by Scilex's board of directors on April 3, 2025, following authorization from stockholders at a special meeting on March 19, 2025. The adjustment will reduce the number of Scilex's issued and outstanding common shares from roughly 243 million to about 6.9 million. Despite recent stock performance challenges, the company maintains a strong gross profit margin of 70.51% and achieved revenue growth of 21.07% in the last twelve months. Get more insights and access to additional financial metrics with InvestingPro, which offers 8 more exclusive tips for SCLX.
Stockholders will not receive fractional shares as a result of the reverse stock split. Instead, they will be compensated with cash payments based on the fractional share value determined by the closing sales price of Scilex's common stock on April 14, 2025. The reverse stock split will also proportionately affect the exercise and conversion prices of certain outstanding warrants, Series A Preferred Stock, convertible notes, and stock options.
The company's common stock will continue trading on The Nasdaq Capital Market under the ticker symbol SCLX, with a new CUSIP number. Continental Stock Transfer & Trust Company will act as the exchange and paying agent for the reverse stock split. Shareholders holding shares in book-entry form or through brokerage accounts are not required to take any action, while those with share certificates will receive instructions for exchanging their pre-split certificates.
Scilex specializes in products for treating acute and chronic pain and, through a proposed joint venture with IPMC Company, aims to expand into neurodegenerative and cardiometabolic diseases. While the company isn't currently profitable, InvestingPro analysts expect profitability this year, with projected sales growth ahead. Its portfolio includes FDA-approved treatments for conditions such as postherpetic neuralgia and migraine, as well as products in development for sciatica and fibromyalgia.
The information in this article is based on a press release statement from Scilex Holding Company.
In other recent news, Scilex Holding Company has submitted a Supplemental New Drug Application (SNDA) to the U.S. Food and Drug Administration (FDA) for its product, ELYXYB, seeking approval for its use in acute pain management. This submission follows the FDA's acknowledgment of receiving the application, a procedural step in the review process. The company aims to expand ELYXYB's current indication, which is already approved for acute migraine treatment, to include acute pain, potentially offering a non-opioid alternative in this market. In another development, Scilex has voluntarily terminated its Sales Agreement with B. Riley Securities Inc., Cantor Fitzgerald & Co., and H.C. Wainwright & Co., LLC, which had been in place since December 2023. This decision was made without any penalties and was reported in a Form 8-K filed with the U.S. Securities and Exchange Commission. Additionally, the U.S. Bankruptcy Court for the Southern District of Texas has extended the lock-up period for Scilex's Dividend Stock to April 14, 2025. Meanwhile, Boral Capital has initiated coverage on Scilex with a Buy rating and set a price target of $22, indicating optimism about the company's diverse portfolio of non-opioid pain management solutions. These developments highlight Scilex's strategic moves and ongoing efforts in the pharmaceutical sector.
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