Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 41

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 Private Placement Warrants, including any of those issued upon conversion of the Working
Capital Loans (and any Private Placement Shares issuable upon the exercise of the Private Placement Warrants that may be issued upon
conversion of the Working Capital Loans) will be entitled to registration rights pursuant to a registration and shareholder rights
agreement signed on April 6, 2022. The holders of these securities are entitled to make up to three demands, excluding short form demands,
that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect
to registration statements filed after the completion of the initial Business Combination and rights to require the Company to register
for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the costs and expenses of filing any such
registration statements.

The Merger Agreement contemplates that, at or
prior to the closing of the business combination between the Company and Semnur (the “Closing”), Denali, Scilex, the Sponsor
and certain shareholders of Denali will enter into 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.

Underwriting
Agreement

The
underwriters received a cash underwriting discount of $0.20 per Public Unit, or $1,650,000 in the aggregate, paid upon the closing
of the IPO. In addition, the underwriters will be entitled to a deferred fee of $0.35 per Public Unit, or $2,887,500 in the
aggregate, which is included in the accompanying consolidated balance sheets. The deferred fee will become payable to the underwriters
from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms
of the underwriting agreement. On November 20, 2023, the Company’s Underwriters entered into an Underwriter Letter Agreement, pursuant
to which the Company’s Underwriters have agreed to receive 30%, or $866,250, of the aggregate $2,887,500 deferred underwriting
commission owed to them upon the closing of the Company’s initial business combination in the form of 86,625 shares of
shares of common stock of the combined company. Under the terms of the Underwriter Letter Agreement, the shares of common stock of the
combined company will be issued at the Closing