Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 83

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 83
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 amounts of indebtedness and the payment of dividends on New Semnur Common Shares. In addition, the Stockholder Agreement provides
that New Semnur will be prohibited from taking certain actions without the consent of Oramed (but only until the date on which all payments
under the Oramed Note and all other obligations under the Oramed Note have been paid in full in cash (such date, the “Release Date”)).
The actions that require Oramed’s consent include, among other things, (i) amending certain agreements, including the Stockholder
Agreement, the Merger Agreement, New Semnur’s certificate of incorporation or bylaws, Semnur’s 2024 Stock Option Plan, the
Stockholder Support Agreement and the Debt Exchange Agreement, in each case that adversely affect the rights of capital stock held by
Scilex in New Semnur (ii) approval of the issuance of capital stock of New Semnur that would result in Scilex holding less than 55% of
the outstanding shares or voting power of New Semnur, (iii) forming any subsidiary that is not wholly owned and controlled by New Semnur,
(iv) permitting any option grants to Scilex Insiders (as defined therein) pursuant to Semnur’s 2024 Stock Option Plan prior to
the execution of the Merger Agreement to be exercisable and (v) permitting certain compensation payments to Scilex Insiders (as defined
therein).

Liquidity,
Capital Resources and Going Concern Consideration

The
Company’s liquidity needs prior to the consummation of the IPO had been satisfied through a payment from the Sponsor of $25,000 (see
Note 5) for the founder shares and the loan under an unsecured promissory note (the “Promissory Note”) from the Sponsor of
up to $400,000 (see Note 5) which was fully repaid on April 12, 2022. Subsequent to the consummation of the IPO and sale of the
Private Placement Units on April 11, 2022, a total of $84,150,000 was placed in the Trust Account, and the Company had
$1,515,795 of cash held outside of the Trust Account, after payment of costs related to the IPO, and available for working capital
purposes. In connection with the IPO, the Company incurred $5,105,315