Company: SMNR
Filing Date: 2025-08-08
Form Type: S-4/A
Source: 0001193125-25-177097
Chunk: 341

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-08
Form: S-4/A
Chunk 341
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2024 through 2043. CB Capital applied market related assumptions to Semnur’s assets to determine future revenue generating potential of Semnur’s drug indication. CB Capital determined that the middle of the base case scenario range of the risk adjusted NPV values was $2,382 million. The ranges for (a) the base case scenario, (b) the worst case scenario, and (c) best case scenario are as follows:

| (i) | The base case scenario range using this analysis was $2,182 million – $2,609 million. |

| (ii) | The worst case scenario range using this analysis was $1,934 million – $2,314 million. |

| (iii) | The best case scenario range using this analysis was $2,620 million – $3,132 million. |

To determine a reasonable valuation for the drug indication, CB Capital had to craft three additional assumptions:

| • |     | Discount Rate: CB Capital conducted a broad literature review and analysis of the appropriate discount rate for the cash flows given the inherent risk in developing and commercializing the drug indications. Based on the risk-free rate, CAPM, and according to the work of Ibbotson Associates, Kroll, and the Journal of Risk and Financial Management, an appropriate discount rate for the development of the drug candidate was approximately 19.5%. Assumptions for the risk-free rate, equity risk premium, small company risk premium, unsystematic risk factor, and cost of debt are as follows and referenced in the DCF Analysis: |

| • |     | Risk free rate: 3.85% - Source: 10-year Treasury Rate as of 08-14-24. |

| • |     | Equity risk premium: 5.00% - Source: Kroll Recommended US Equity Risk Premium effective 06-05-24. |

| • |     | Small company risk premium: 3.00% - Source: Ibbotson Small Cap Premium, Using DECA market cap as of 08-14-24 of $81.4 million (sourced from CapIQ). |

| • |     | Unsystematic risk factor: 13.04% - Source: Journal of Risk and Financial Management. |

| • |     | Cost of debt: 13.60% - Source: US CCC rated corporate bonds effective yield as of 08-14-24. |

| • |     | The terminal growth rate after 2043