Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 692

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 4
Chunk 692
---
 were sold at a price of $10.00 per Unit, and the IPO generated gross proceeds
of $82,500,000. US Tiger Securities, Inc. and EF Hutton, division of Benchmark Investments, LLC (the “Denali Underwriters”)
acted as the underwriters of the IPO. The securities sold in the IPO were registered under the Securities Act on a registration statement
on Form S-1 (No. 333-263123). The SEC declared the registration statement effective on April 6, 2022.

On
April 11, 2022, a total of $84,150,000 of the net proceeds from the IPO and the sale of the Private Placement Units was deposited in
the Trust Account. In connection with the IPO, we incurred $5,105,315 in transaction costs, consisting of $1,650,000 of underwriting
fees, $2,887,500 of deferred underwriting fees (the “Deferred Discount”) and $567,815 of other offering costs. Pursuant to
the Deferred Discount Agreement (as defined below), the Denali Underwriters have agreed to receive $866,250 of the aggregate $2,887,500
Deferred Discount owed to them upon the closing of the Business Combination in the form of 86,625 shares of New Semnur Common Stock ($10
per share of New Semnur Common Stock) (the “Common Stock Consideration”). Upon the terms of the Deferred Discount Agreement,
the Common Stock Consideration will be issued at the Closing and the remaining $2,021,250 of the aggregate Deferred Discount owed will
remain payable at the Closing in cash in accordance with the terms of the Underwriting Agreement. Until June 4, 2024, the net proceeds
of our IPO and the Private Placement held in the Trust Account were invested in U.S. government securities with a maturity of 185 days
or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct
U.S. government treasury obligations. However, on June 4, 2024, to mitigate the risk of being deemed to have been operating as an unregistered
investment company under the Investment Company Act, the Company instructed Wilmington Trust, National Association, the trustee with
respect to the Trust Account, to liquidate the U.S. government securities or money market funds held in the Trust Account and thereafter
to hold all funds in the Trust Account in