On December 22, Scilex Holding Co Entered Into That Certain Sales Agreement; Pursuant To Deal, Co May Offer And Sell, From Time To Time Up To $170M In Shares Of The Company's Common Stock
Portfolio Pulse from Benzinga Newsdesk
Scilex Holding Co has entered into a sales agreement according to an SEC filing, which allows the company to offer and sell up to $170 million in shares of its common stock from time to time.
December 22, 2023 | 9:23 pm
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Scilex Holding Co has the potential to raise up to $170 million through the sale of common stock, which could dilute current shareholders but also provide capital for growth.
The announcement of a potential sale of up to $170 million in common stock could lead to dilution of existing shares, which typically puts downward pressure on the stock price in the short term. However, the influx of capital could be used for growth initiatives, which might be positive in the long term. The short term impact is likely negative due to the immediate dilution concern.
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