Asia FX muted, dollar nurses losses as Trump tariffs take effect
Scilex Holding Company (NASDAQ:SCLX), a biopharmaceutical firm with a market capitalization of $21 million and revenue of $56.6 million in the last twelve months, announced changes to its non-employee director compensation policy, following a reverse stock split executed on April 15, 2025. The Compensation Committee of the Board approved the Amended and Restated Non-Employee Director Compensation Policy on May 9, 2025, to align with the 1-for-35 reverse stock split of Scilex’s common stock.
Under the new policy, each non-employee director will now receive an initial option grant to purchase 7,142 shares of common stock, down from 250,000 shares prior to the split. Additionally, the annual stock option grant for continuing non-employee directors has been adjusted to 2,857 shares from the previous 100,000 shares. These changes are effective retroactively from the date of the reverse stock split. The stock has faced significant challenges, declining 85% over the past six months, according to InvestingPro data.
The company’s decision ensures that the value of the equity compensation for its non-employee directors remains consistent despite the reverse stock split. The rest of the cash and equity compensation terms for non-employee directors remain unchanged. With the company’s next earnings report due on May 19, InvestingPro subscribers can access 8 additional key insights about Scilex’s financial health and valuation status. The Amended and Restated Non-Employee Director Compensation Policy, including all adjustments for stock splits, dividends, and similar events after the reverse stock split, is detailed in Exhibit 10.1 of the SEC filing.
This announcement is based on a press release statement and provides investors with insights into Scilex’s corporate governance practices following significant changes to its stock structure.
In other recent news, Scilex Holding Co has announced several key developments. The company reported that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation for its colchicine product, Gloperba®, aimed at treating pericarditis. This designation may provide Scilex with exclusive marketing rights for seven years upon approval. Additionally, Scilex has amended its merger agreement with Denali Capital Acquisition Corp, extending the deadline for their business combination to September 30, 2025, with potential for further extension. This amendment addresses the de-listing of Denali’s securities from Nasdaq and their quotation on the OTC Markets.
Furthermore, Scilex has received approval from Health Canada for its migraine treatment, ELYXYB, providing a new option for millions of Canadians affected by migraines. The company also announced a 1-for-35 reverse stock split to comply with Nasdaq’s minimum bid price requirement, effective April 15, 2025. This action led Boral (OTC:BOALY) Capital to downgrade Scilex’s stock rating from Buy to Hold, opting to assess the impact of the reverse split on the company’s valuation. Scilex is also pursuing a joint venture with IPMC to target neurodegenerative and cardiometabolic diseases, indicating its strategic expansion efforts. These developments reflect Scilex’s ongoing initiatives in both regulatory advancements and strategic partnerships.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.