Company: SMNR
Filing Date: 2025-06-11
Form Type: S-4/A
Source: 0001193125-25-139124
Chunk: 70

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-06-11
Form: S-4/A
Chunk 70
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 develop its commercial infrastructure and other business functions, New Semnur may not be able to replace these services or enter into appropriate third-party agreements on terms and conditions, including cost, comparable to those that New Semnur will receive from Scilex under the Transition Services Agreement.

Additionally, after the Transition Services Agreement terminates, New Semnur may be unable to sustain the services at the same levels or obtain the same benefits as when New Semnur was receiving such services and benefits from Scilex. When New Semnur begins to operate these functions separately from Scilex, if it does not have its own adequate systems and business functions in place, or is unable to obtain them from other providers, New Semnur may not be able to operate its business effectively or at comparable costs, and its profitability may decline. In addition, Semnur has historically received informal support from Scilex, which may not be addressed in the Transition Services Agreement with Scilex. The level of this informal support will diminish or cease following the Business Combination.

Semnur is also dependent upon Scilex to provide funding to support its operations, at least until such time as it is able to obtain external financing on its own to continue to fund its research and development, including its plans for clinical and preclinical trials and new product development, as well as to fund operations generally. Such external financing may include a combination of equity offerings, debt financings, collaborations, government contracts or other capital sources, including potential collaborations with other companies or other strategic transactions. The amount and timing of New Semnur’s future funding requirements will depend on many factors, some of which are outside of its control. Scilex believes that establishing Semnur as a stand-alone company through the Business Combination will highlight its underlying fundamentals and future growth potential and, as a result, Semnur will be better able to attract investors and obtain the financing necessary to develop and commercialize SP-102. See the sections titled “Risk Factors—Risks Related to Semnur’s Relationship with Scilex”, “Business of Semnur—Employees and Human Capital Resources”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Semnur — Liquidity and Capital Resources — Future Liquidity Needs” and “Questions and Answers About the Business Combination and the Meeting — Questions and Answers About the Business Combination — Why is Scilex conducting the Business Combination and related transactions?”for further discussions of Semnur’s and Scilex’s ongoing relationship and