PALO ALTO, Calif., June 11, 2024 (GLOBE NEWSWIRE) -- Scilex Holding Company (NASDAQ:SCLX, "Scilex" or the "Company")), an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain, today announced that it has entered into a commitment letter (the "Commitment Letter") with Perigrove LLC and Graf Holdings (collectively the "Lender") for a $100 million 5-year term financing with royalty-based payments ("Commitment"). The Company intends to use the funds to repay the outstanding amount of its existing senior secured loan provided by Oramed Pharmaceuticals Inc., which is approximately $85 million. The Company intends to use the rest of the funds raised, which is estimated to be $15 million, for general corporate purposes. In connection with the transaction, upon receipt of the Commitment funds, the Company will issue to the Lender a warrant to purchase up to an aggregate of 32,500,000 shares of the Company's common stock, with an exercise price of $1.20. In the event the Commitment is not funded in accordance with the Commitment Letter, the Deposit will automatically convert to an unsecured loan and the Company will issue an unsecured promissory note (the "Note") to the Lender to evidence such unsecured loan. The Note will have a maturity of 5 years, will be prepayable without premium or penalty, and will bear interest, payable quarterly in arrears, in an amount equal to the Applicable Interest Amount (as defined in the Commitment Letter) for such period, which interest amount is based on the greater of a percentage of net sales on the Company's products or 12% per year (in each case as described in the Commitment Letter).   "This financing commitment in conjunction with certain anticipated strategic transactions with Perigrove's portfolio companies enhances Scilex's already strong commercial position. We believe that our growing commercial products and potential pipeline will help drive revenues to be over $1 billion in the next 4-5 years. We expect that this transaction will eliminate the existing Oramed senior secured debt and improve our cash position where we can utilize the available resources to reinvest in our commercial products.   We are grateful for Perigrove's commitment to provide us with the $100 million loan, which gives us more flexibility in our capital position and reduces our dependence on future capital raising activities," said Jaisim Shah, President and Chief Executive Officer of Scilex. "The Scilex team is driving extraordinary success with ZTlido®", said a representative of Graf Holdings "we are excited to support the Company and management team as they continue growing their commercial products to profitability and bringing more innovative non-opioid pain management medicines to patients," said David Gefner, Chief ...