Company: SMNR
Filing Date: 2025-08-08
Form Type: S-4/A
Source: 0001193125-25-177097
Chunk: 60

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-08
Form: S-4/A
Chunk 60
---
 |

17

| 50,000,000 of shares associated with Semnur option holders and 30,500,000 of shares of Semnur consultant fees paid in shares. |

The calculation in this footnote (2), used as the denominator for each book value per share as of March 31, 2025, as adjusted, excludes shares of common stock issued as Merger Consideration to the former securityholders of Semnur from the denominator of the per-share calculation as well as certain securities that could be potential sources of dilution after the closing of the Business Combination, including: 8,235,378 shares underlying public warrants and 510,000 shares underlying private warrants forming part of the Denali private placement units; and approximately 50,000,000 shares of New Semnur Common Stock reserved for issuance to Semnur option holders (assuming approval of the Option Exchange Proposal).

| Q: | What is the impact of Scilex’s previously announced dividend of its ownership interest in Semnur on Denali’s shareholders? |

| A: | On October 27, 2024, the Scilex Board, Semnur’s controlling stockholder, declared a stock dividend (the “Scilex Dividend”) consisting of an aggregate of 5,000,000 shares of Series 1 Mandatory Exchangeable Preferred Stock, par value $0.0001 per share, of Scilex (the “Scilex Series 1 Preferred Stock”) to record holders of certain securities of Scilex as of the close of business on November 7, 2024, which was subsequently changed to such later date to be determined in the sole discretion of the Scilex Board (such later record date as so determined by the Scilex Board, the “Scilex Record Date”). The Scilex Board has not yet set a payment date for the Scilex Dividend and the Scilex Board has the right to change the Scilex Record Date and to revoke the payment of the Scilex Dividend at any time prior to the payment date. |

Pursuant to the terms of the Certificate of Designation of Preferences, Rights and Limitations of Series 1 Mandatory Exchangeable Preferred Stock (the “Scilex Certificate of Designation”) governing the Scilex Series 1 Preferred Stock, the holders of the Scilex Series 1 Preferred Stock may become entitled to a pro rata portion of the number of shares that represents the lesser of (