Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 691

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 691
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 may be exercised for cash or on a cashless basis and subject to certain limited exceptions and will
be subject to transfer restrictions until 30 days following the consummation of an initial business combination. If the Private Placement
Warrants are held by holders other than the sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by
us under all redemption scenarios and exercisable by holders on the same basis as the Public Warrants. The Private Placement Warrants
have been issued pursuant to, and are governed by the Private Placement Units Purchase Agreement. The issuances of the Private Placement
Units were made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. The sale of the Private
Placement Warrants was made pursuant to an exemption from registration contained in Section 4(a)(2) of the Securities Act.

11

On
August 30, 2024, the sponsor and Scilex entered into a sponsor interest purchase agreement (the “Sponsor Interest Purchase Agreement”),
pursuant to which Scilex purchased 500,000 Class B ordinary shares (the “Purchased Interests”), that were then-held by the
sponsor. The aggregate consideration for the purchase and sale of the Purchased Interests is as follows: (i) $2,000,000 (the “Cash
Consideration”) and (ii) 300,000 shares of common stock, par value $0.0001 per share, of Scilex (the “Scilex Shares”).
Pursuant to the Sponsor Interest Purchase Agreement, Scilex paid the Cash Consideration and has agreed to issue the Scilex Shares to
the sponsor contingent upon and following the occurrence of the Effective Time. The Purchased Interests will convert automatically, on
a one-for-one basis, into one share of New Semnur Common Stock at the effective time of the Domestication (as defined in the Merger Agreement)
pursuant to the terms of the Merger Agreement. The sale of the Purchased Interests was made pursuant to an exemption from registration
contained in Section 4(a)(2) of the Securities Act.

Use
of Proceeds from the Initial Public Offering

On
April 11, 2022, we consummated our IPO of 8,250,000 Units, which included 750,000 Units issued pursuant to the partial exercise by the
underwriters of their over-allotment option. The Units