Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 338

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 338
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c) best case scenario are as follows:

| (i) | The base case scenario range using this analysis was $2,182 million – $2,609 million. |

| (ii) | The worst case scenario range using this analysis was $1,934 million – $2,314 million. |

| (iii) | The best case scenario range using this analysis was $2,620 million – $3,132 million. |

To determine a reasonable valuation for the drug indication, CB Capital had to craft three additional assumptions:

| • |     | Discount Rate: CB Capital conducted a broad literature review and analysis of the appropriate discount rate for the cash flows given the inherent risk in developing and commercializing the drug indications. Based on the risk-free rate, CAPM, and according to the work of Ibbotson Associates, Kroll, and the Journal of Risk and Financial Management, an appropriate discount rate for the development of the drug candidate was approximately 19.5%. Assumptions for the risk-free rate, equity risk premium, small company risk premium, unsystematic risk factor, and cost of debt are as follows and referenced in the DCF Analysis: |

| • |     | Risk free rate: 3.85% - Source: 10-year Treasury Rate as of 08-14-24. |

| • |     | Equity risk premium: 5.00% - Source: Kroll Recommended US Equity Risk Premium effective 06-05-24. |

| • |     | Small company risk premium: 3.00% - Source: Ibbotson Small Cap Premium, Using DECA market cap as of 08-14-24 of $81.4 million (sourced from CapIQ). |

| • |     | Unsystematic risk factor: 13.04% - Source: Journal of Risk and Financial Management. |

| • |     | Cost of debt: 13.60% - Source: US CCC rated corporate bonds effective yield as of 08-14-24. |

| • |     | The terminal growth rate after 2043: Despite the projected success of the drug, it is prudent to assume a low-growth scenario after 2043 as there will be more competition from more effective or innovative drug candidates. CB Capital recognized that global demographics will remain favorable for the indication after 2043, but a low-growth scenario of 1% was reasonable given the potential for newer indications or alternative treatments. |

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