Scilex Holding Co (SCLX): auditor change — Scilex dismisses Ernst & Young as auditor amid investigation; expects Nasdaq notice and debt default

Scilex Holding Co

EY requested investigation into June and September 2024 contracts; audit committee probe not completed for weeks.
Audit committee dismissed EY after EY could not assure timely review of Q3 2024 financials.
Failure to file Q3 10-Q will trigger Nasdaq non-compliance notice and event of default under Oramed and Tranche B notes.
Default could accelerate ~$70M+ in notes and allow penalty interest, liquidated damages, and redemption demands.
Company has no disagreements with EY but previously disclosed a material weakness in internal controls.

item 4.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.97

Scilex Holding Co dismissed Ernst & Young LLP as its auditor.

Action: dismissal
Auditor: Ernst & Young LLP

Exact text from the filing

On November 19, 2024, because of EY's inability to provide such assurance regarding the completion of its review of the Q3 Financials, the Audit Committee determined to dismiss EY, effective immediately.

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Scilex Holding Co filing history →

Source: SEC EDGAR

accession 0001193125-24-262065

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