Company: SMNR
Filing Date: 2025-07-23
Form Type: S-4/A
Source: 0001193125-25-163401
Chunk: 70

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-23
Form: S-4/A
Chunk 70
---
ur 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 out of pocket fees, costs or expenses. While Semnur believes that the term of the Transition Services Agreement provides sufficient time for New Semnur to develop its commercial infrastructure and other business functions, New Semnur may not be able to replace these services or enter into appropriate third-party agreements on terms and conditions, including cost, comparable to those that New Semnur will receive from Scilex under the Transition Services Agreement. Additionally, after the Transition Services Agreement terminates, New Semnur may be unable to sustain the services at the same levels or obtain the same benefits as when New Semnur was receiving such services and benefits from Scilex. When New Semnur begins to operate these