Vickers Vantage Corp. (OTCMKTS:VCKAU) Enters Waiver Agreements to Avoid Default on Senior Notes

Vickers Vantage Corp. (OTCMKTS:VCKAU), formerly known as Scilex Holding Company, recently disclosed in an 8-K filing with the Securities and Exchange Commission (SEC) that it had faced potential default issues due to delays in filing its Quarterly Report on Form 10-Q for the quarter ending September 30, 2024. This delay could have resulted in defaulting on senior notes, including the Oramed Note and Tranche B senior secured convertible notes.

The company stated that failure to meet these obligations could lead to the acceleration of payment under the notes and trigger various remedies, including penalty interest and liquidated damages. To address these concerns, Vickers Vantage Corp. has been working diligently to file the delayed 10-Q report as soon as possible.

On November 21, 2024, Vickers Vantage Corp. reached agreements with key stakeholders to avoid default repercussions. The company entered into a Waiver and Consent agreement with Oramed regarding the Oramed Note. This waiver includes an extension for filing the September 2024 financial statements till January 20, 2025, and engaging a new independent accounting firm.

Similarly, the company also entered into Waiver and Consent agreements with other institutional investors involved in the Tranche B senior secured convertible notes. These agreements ensure an extended deadline for filing the 10-Q report and waive default provisions under the notes. As a result, there is currently no event of default under either the Oramed Note or the Tranche B notes.

While the initial principal amounts under the Oramed Note and Tranche B notes were substantial, Vickers Vantage Corp. has made progress in reducing these amounts through conversions into common stock. The company has converted a significant portion of the Tranche B notes into common stock, thereby reducing the outstanding principal amounts.

Additionally, Vickers Vantage Corp. highlighted the importance of adhering to financial and operating covenants outlined in the existing notes to avoid adverse effects on its business operations. Failure to comply with these covenants could lead to severe consequences, impacting the company’s financial standing and market performance.

The company emphasized the uncertainties surrounding its ability to meet deadlines, maintain compliance with Nasdaq listing standards, and address default events. Vickers Vantage Corp. acknowledged the risks associated with failing to fulfill obligations under the existing notes, including potential impacts on stock prices, shareholder dilution, and future fundraising capabilities.

Investors are advised to consider the risks mentioned in Vickers Vantage Corp.’s filings with the SEC, including previous annual and quarterly reports. The company cautioned against placing undue reliance on forward-looking statements, noting inherent uncertainties that could affect actual results.

In conclusion, Vickers Vantage Corp’s recent agreements with stakeholders have provided temporary relief from default concerns, but sustained efforts are required to ensure compliance with financial obligations and regulatory standards.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Vickers Vantage Corp. I’s 8K filing here.

Vickers Vantage Corp. I Company Profile

As of November 10, 2022, Vickers Vantage Corp. I was acquired by Scilex Holding Company, in a reverse merger transaction. Vickers Vantage Corp. I does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities.