Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 329

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 329
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 compete not only with small and mid-cap companies but also with large and mega cap companies competing in the pain treatment market. Furthermore, companies included in the universe of guideline companies, regardless of their capitalization sizes, hold a pipeline of pre-commercial drugs, making them comparable to Semnur. Lastly, market leaders have historically had valuation increases while pending FDA approval on one or more drugs. These market leaders were analyzed to compare valuation increases that Semnur may also experience as they go through the remaining clinical trials of SP-102.

These publicly held guideline companies were further reviewed in detail regarding their operational performance, financial performance, and drug indication pipelines. Historical operating financial performance was evaluated

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for each of the guideline public companies, including market value of equity, interest bearing debt, cash, LTM earnings before taxes, LTM tax expense, ratio of equity to total capital, ratio of debt to total capital, and predicted 5-year levered beta from S&P Capital IQ estimates. These metrics are used to calculate the beta, a component used in deriving the WACC. Pre-commercial companies do not generate revenue, and it is not possible to review all of the foregoing metrics to evaluate operating financial performance. Because the analysis of operating financial performance and the calculation of beta requires a review of all of the foregoing metrics rather than selecting a few that are available, pre-commercial companies were excluded. Financial performance metrics typically utilized in the calculation of the beta component applied to the WACC were reviewed, and CB Capital excluded companies, such as pre-commercial companies, that did not have available data. Lastly, market leaders were analyzed when comparing drug indication pipelines, as these companies report forward looking metrics, setting the stage for how companies pending FDA approval will likely perform following FDA approval. Pre-commercial companies that do not report such forward looking metrics were removed. In connection with rendering its fairness opinion, CB Capital presented its financial analyses and valuation methodologies, including its approach to the selection of comparable companies and the list of companies selected, to the Denali Board. CB Capital also answered various questions from the Denali Board regarding these matters and its overall analysis. Furthermore, CB Capital presented its final fairness opinion and report to the Denali Board, which outlined the various components of its valuation. While the Denali Board reviewed CB Capital’s comparable company analysis as part of the overall fairness opinion presentation, including the list of companies selected by CB Capital, the Denali Board did not make a separate determination as to whether the companies selected by CB Capital were comparable to