07:12 AM EDT, 06/12/2024 (MT Newswires) -- Scilex Holding ( SCLX ) said Tuesday that it signed a commitment letter with Perigrove and Graf Holdings as lenders for a $100 million, five-year term financing with royalty-based payments.

The company said it agreed to issue the lenders a warrant to purchase up to 32.5 million common Scilex ( SCLX ) shares at an exercise price of $1.20. If the commitment is not funded according to the agreed terms, Scilex ( SCLX ) said the deposit will be converted to an unsecured loan and it will issue an unsecured promissory note to the lenders as evidence of the loan.

Scilex ( SCLX ) said it plans to use the funds funds to repay the outstanding amount of about $85 million under its existing senior secured loan from Oramed Pharmaceuticals ( ORMP ) and for general working capital.

Shares of Scilex ( SCLX ) were up more than 7% premarket Wednesday.

Price: 1.4300, Change: +0.10, Percent Change: +7.52