Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 596

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 596
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, the remaining proceeds held
in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions
and pursue our growth strategies. 

As
of December 31, 2024, we had cash of $16,868 outside of the Trust Account. If we do not complete the proposed business combination, we
intend to use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence
on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their
representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate
and complete a business combination. 

For finance transaction costs in connection with a business combination,
the sponsor or an affiliate of the sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may
be required (the “Working Capital Loans”). If we complete the initial business combination, we would repay such loaned amounts,
or at the lender’s discretion, up to $1.5 million of such Working Capital Loans may be convertible into units of the post business
combination entity at a price of $10.00 per unit. The units would be identical to the Private Placement Units. In the event that the initial
business combination does not close, we may use a portion of the working capital held outside of the Trust Account to repay such loaned
amounts, but no proceeds from the Trust Account would be used for such repayment. On April 11, 2023, we issued a convertible promissory
note (the “Convertible Promissory Note”) in the total principal amount of up to $825,000 to the sponsor. The Convertible Promissory
Note bears an interest accruing on the unpaid and outstanding total principal amount at the lowest short-term Applicable Federal Rate
as in effect on the date thereof and is payable in arrears on the maturity date. Interest will be calculated on the basis of a 365-day
year and the actual number of days elapsed, to the extent permitted by applicable law. The Convertible Promissory Note was issued with
an initial principal balance of $412,500 (the “Initial Principal Balance”). The sponsor has further lent loans in the aggregate
amount of $430,000 on July 18, 2023, October 12, 2023 and December 29, 2023.