Scilex Holding Company, a majority-owned subsidiary of Sorrento Therapeutics, and Vickers Vantage I today announced plans to merge at a pro forma equity value post-money of $1.64 billion. Sorrento is a biopharmaceutical company focused on developing and commercializing non-opioid therapies for patients with acute and chronic pain.
If the deal is approved, Scilex would list on the Nasdaq. The transaction is expected to close by the third quarter.
Assuming no redemptions, current Scilex stockholders will own approximately 88% of the outstanding shares of the combined company, subject to debt adjustment. As part of the transaction, Scilex’s existing equity holders will roll 100% of their equity into the merged company. The SPAC’s sponsors have agreed to cancel 40% of their private warrants if redemptions exceed 75%.
The deal is expected to deliver up to $140 million held in the Vickers Vantage I trust account at closing before expenses, and again, assuming no redemptions. Read more.
