Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 101

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 2
Chunk 101
---
 and available for working capital purposes. 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 and $567,815 of other offering costs. As of June 30, 2025, we had investment held in the Trust Account of $548,318. We intend to
use substantially all of the remaining funds held in the Trust Account, including any amounts representing interest earned on the Trust
Account (less income taxes payable), to complete our business combination. To the extent that our share capital or debt is used, in whole
or in part, as consideration to complete a business combination, 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 June 30, 2025, we had cash of $126 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. 

33

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