Company: SMNR
Filing Date: 2025-06-11
Form Type: S-4/A
Source: 0001193125-25-139124
Chunk: 48

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-06-11
Form: S-4/A
Chunk 48
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 develop Semnur’s pipeline and capabilities by selectively acquiring differentiated technologies, investing in technologies to prepare for commercialization, and evaluating strategic partnerships to improve patient experience or enable greater patient access. Additionally, Scilex plans to pursue strategic partnerships and collaborations to enhance the value of Semnur’s pipeline and platform technologies, while also in-licensing non-opioid therapeutics that complement Semnur’s product portfolio. Scilex determined to retain a significant amount of New Semnur’s voting securities in order to allow time for the execution of its plans to position Semnur for long-term success. This approach aims to maximize value for both Scilex stockholders and New Semnur stockholders before rewarding them with tangible benefits, such as dividend distributions or the benefits of other strategic transactions. As Semnur grows and these longer-term plans unfold, Scilex may determine to make additional distributions of New Semnur Common Stock to its stockholders. The payment of any future dividends or other distributions to Scilex stockholders in the form of New Semnur Common Stock will be dependent upon Scilex’s revenues and earnings, if any, capital requirements, tax implications to Scilex and its stockholders, and general financial condition and any such dividend or distribution will be within the discretion of Scilex’s board of directors, including as to timing, size and method of distribution subject to any consent rights of the holder of the Oramed Note and the holders of the Tranche B Senior Secured Convertible Notes issued by Scilex on October 8, 2024, or any other indebtedness of Scilex.

| Q: | What is the Debt Exchange Agreement? |

Pursuant to the terms of the Debt Exchange Agreement, effective as of immediately prior to, and contingent upon, the closing of the Business Combination, Scilex has elected to contribute the Outstanding Indebtedness to Semnur in exchange for the issuance by Semnur to Scilex of that number of shares of Semnur Preferred Stock (subject to adjustment for recapitalizations, stock splits, stock dividends and similar transactions) (the “Exchange Shares” and such transaction, the “Contribution”) that is equal to (i) the Aggregate Outstanding Amount plus the amount that is equal to 10% of the Aggregate Outstanding Amount divided by (ii) $11.00 (rounded up to the nearest whole share); provided, that in no event shall the Aggregate Outstanding Amount exceed $60,000,000