Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 68

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 68
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 implement stock repurchase programs, declare dividends and make other decisions. See the section titled “Description of New Semnur Securities — Anti-takeover Matters in New Semnur’s Governing Documents and Under Delaware Law” for additional information regarding Scilex’s ability to take such actions.

Even when Scilex ceases to control a majority of the total voting power of New Semnur, for so long as Scilex continues to own a significant percentage of the New Semnur Common Stock and for so long as the Scilex Group owns any shares of New Semnur Series A Preferred Stock, Scilex will still be able to significantly influence the composition of the New Semnur Board and the approval of actions requiring stockholder approval. Accordingly, for such period of time, Scilex will have significant influence with respect to New Semnur’s management, business plans and policies. Because of the significant ownership position held by Scilex, New Semnur’s classified board structure and the rights granted to Scilex under the Stockholder Agreement, new investors may not be able to effect a change in New Semnur’s business or management. See the section titled “Risk Factors—Risks Related to Semnur’s Relationship with Scilex”.

Scilex currently performs or supports many important corporate functions for Semnur and following the completion of the Business Combination, New Semnur will need to replicate or replace certain functions, systems and infrastructure provided by Scilex to which New Semnur will no longer have the same access after the Business Combination. New Semnur anticipates that it will rely significantly on Scilex for operational and funding support as it transitions to being a stand-alone public company. In connection with the closing of the Business Combination, New Semnur will enter into a transition services agreement with Scilex (the “Transition Services Agreement”) for a term of three years, pursuant to which New Semnur will be able to utilize certain employees and other service providers of Scilex to operate its business, including with respect to the following business functions: finance, human resources, information systems, legal and administrative, R&D support and commercialization support. Transition services provided by Scilex will be on a cost plus 10% basis, provided that the service fees will not exceed $2,000,000 per annum until all payments under the Oramed Note have been paid in full in cash, and New Semnur will reimburse Scilex for its