Scilex Holding Company (SCLX)

[Stingray]

Scilex Holding Shares Tumble Amid Public-Offering Plans
11:59 am ET April 24, 2023 (Dow Jones) Print

By Colin Kellaher


Shares of Scilex Holding Co. fell more than 30% on Monday after the pain-management company said it planned to raise $300 million in a public stock offering.

Scilex shares, which had surged since its majority owner, Sorrento Therapeutics Inc., filed for chapter 11 bankruptcy in February, were recently changing hands at $7.06, down more than 31%.

The Palo Alto, Calif., company, which currently has about 145.8 million shares outstanding, said in a filing with the Securities and Exchange Commission that it plans to use the offering's proceeds for working capital and general corporate purposes, adding that it hasn't designated any specific uses for the funds.

The Wall Street Journal reported earlier this month that Scilex was exploring a sale of new stock to take advantage of the share-price rally.