Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 65

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 65
---
 being a stand-alone public company. In connection with the closing of the Business Combination, New Semnur will enter into a transition services agreement with Scilex (the “Transition Services Agreement”), for a term of three years, pursuant to which New Semnur will be able to utilize certain employees and other service providers of Scilex to operate its business, including with respect to the following business functions: finance, human resources, information systems, legal and administrative, R&D support and commercialization support. Transition services provided by Scilex will be on a cost plus 10% basis, provided that the service fees will not exceed $2,000,000 per annum until all payments under the Oramed Note have been paid in full in cash, and New Semnur will reimburse Scilex for its out of pocket fees, costs or expenses. While Semnur believes that the term of the Transition Services Agreement provides sufficient time for New Semnur to 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,

<div align='center'>20</div>

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