Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 246

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1B
Chunk 246
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 and (ii) 300,000 shares of common stock, par value $0.0001 per share, of Scilex (the “Scilex Shares”).
Pursuant to the Sponsor Interest Purchase Agreement, Scilex paid the Cash Consideration and has agreed to issue the Scilex Shares to
the sponsor contingent upon and following the occurrence of the Effective Time. The Purchased Interests will convert automatically, on
a one-for-one basis, into one share of New Semnur Common Stock at the effective time of the Domestication (as defined in the Merger Agreement)
pursuant to the terms of the Merger Agreement. The sale of the Purchased Interests was made pursuant to an exemption from registration
contained in Section 4(a)(2) of the Securities Act.

Use
of Proceeds from the Initial Public Offering

On
April 11, 2022, we consummated our IPO of 8,250,000 Units, which included 750,000 Units issued pursuant to the partial exercise by the
underwriters of their over-allotment option. The Units 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