Company: SMNR
Filing Date: 2025-08-12
Form Type: S-4/A
Source: 0001193125-25-178821
Chunk: 61

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-12
Form: S-4/A
Chunk 61
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 part of the Denali private placement units; and approximately 50,000,000 shares of New Semnur Common Stock reserved for issuance to Semnur option holders (assuming approval of the Option Exchange Proposal).

| Q: | What is the impact of Scilex’s previously announced dividend of its ownership interest in Semnur on Denali’s shareholders? |

| A: | On October 27, 2024, the Scilex Board, Semnur’s controlling stockholder, declared a stock dividend (the “Scilex Dividend”) consisting of an aggregate of 5,000,000 shares of Series 1 Mandatory Exchangeable Preferred Stock, par value $0.0001 per share, of Scilex (the “Scilex Series 1 Preferred Stock”) to record holders of certain securities of Scilex as of the close of business on November 7, 2024, which was subsequently changed to such later date to be determined in the sole discretion of the Scilex Board (such later record date as so determined by the Scilex Board, the “Scilex Record Date”). The Scilex Board has not yet set a payment date for the Scilex Dividend and the Scilex Board has the right to change the Scilex Record Date and to revoke the payment of the Scilex Dividend at any time prior to the payment date. |

Pursuant to the terms of the Certificate of Designation of Preferences, Rights and Limitations of Series 1 Mandatory Exchangeable Preferred Stock (the “Scilex Certificate of Designation”) governing the Scilex Series 1 Preferred Stock, the holders of the Scilex Series 1 Preferred Stock may become entitled to a pro rata portion of the number of shares that represents the lesser of (a) 10% of the shares of Semnur Common Stock (or such other securities into which or for which such stock may be exchanged or converted, including New Semnur Common Stock), held by Scilex as of immediately prior to the Scilex Effective Time (as defined below) (taking into account any adjustment for any stock dividend, stock split, reverse stock split or similar transaction) and (b) that number of shares of Semnur Common Stock (or such other securities into which or for which such stock may be exchanged or converted, including New Semnur Common Stock) equal to $200,000,000 divided by the closing price of such Semnur Common