Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 19

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 warranty or
other obligation or agreement of Scilex contained in the Stockholder Support Agreement.

Sponsor Interest Purchase Agreement

In connection with the execution and delivery
of the Merger Agreement, the Sponsor and Scilex entered into a Sponsor Interest Purchase Agreement (the “SIPA”) dated August
30, 2024 (the “Signing Date”). Pursuant to the SIPA, Scilex agreed to purchase 500,000 Class B ordinary shares, par value
$0.0001 per share (the “Purchased Interests”), of the Company that are currently held by the Sponsor. The aggregate consideration
for the purchase and sale of the Purchased Interests is as follows: (i) $2,000,000 (the “Cash Consideration”) and (ii) 300,000
shares of common stock, par value $0.0001 per share, of Scilex (the “Scilex Shares”). Pursuant to the SIPA, Scilex has paid
the Cash Consideration on the Signing Date 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 New Semnur Common
Share at the effective time of the Domestication pursuant to the terms of the Merger Agreement.

10

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

Amended and Restated Registration Rights Agreement

The Merger Agreement contemplates that, at or
prior to the closing of the Merger, the Company and Scilex will enter into an amended and restated registration rights agreement (the
“Registration Rights Agreement”), which, among other things, will govern the registration of certain New Semnur Common Shares
for resale and be effective as of the closing of the Merger.

Stockholder Agreement

Concurrently with the execution of the Merger
Agreement, the Company entered into a Stockholder Agreement with Scilex (the “Stockholder Agreement”). Pursuant to the Stockholder
Agreement, from and after the Effective Time, and for so long as Scilex beneficially owns any New Semnur Preferred Shares, among other
things, (i) Scilex shall have the right, but not the obligation, to designate each director to be nominated, elected or appointed to the
Board of Directors of New Semnur (“New Semnur Board”) (