Scilex Holding, a majority-owned subsidiary of Sorrento Therapeutics, announced that it has entered into a securities purchase agreement with YA II PN, Ltd., a Cayman Islands exempt limited partnership managed by Yorkville Advisors Global, for the issuance and sale of unsecured convertible debentures in the principal amount of up to $25 million. The convertible debentures will be issued and sold in three tranches as follows: $10.0 million upon the signing of the definitive agreement with respect to the debentures, $7.5 million upon the filing of a registration statement with the U.S. Securities and Exchange Commission relating to the shares of common stock underlying the convertible debentures, and $7.5 million at the time such registration statement is declared effective by the SEC. The convertible debentures will bear interest at a rate of 7.00% per year and will mature on December 21, 2023, the date that is nine months following the First Closing Date. Scilex intends to use the proceeds to enhance the commercialization of Scilex’s three non-opioid pain management products for the treatment of acute and chronic pain. "We are pleased to conclude this agreement with Yorkville, which will provide funding to expand ZTlido promotion worldwide and enhance the launch and commercialization of Gloperba and ELYXYB. We believe the acute and chronic pain patients are not well served with the current options on the market. A recent report from the Centers for Disease Control and Prevention states that opioids do not provide clinically meaningful pain relief and are not first line therapy for acute and chronic pain3," said Jaisim Shah, Chief Executive Officer and President of Scilex.
Published first on TheFly
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