Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 393

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1C
Chunk 393
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 the completion of our initial business combination. In addition, we have agreed not to enter into a definitive
agreement regarding an initial business combination without the prior consent of our sponsor.

If
any of our founders, officers or directors becomes aware of a business combination opportunity which is suitable for an entity to which
he, she or it has then-current fiduciary or contractual obligations, then, subject to their fiduciary duties under Cayman Islands law,
he, she or it will need to honor such fiduciary or contractual obligations to present such business combination opportunity to such entity,
before we can pursue such opportunity.

No
compensation of any kind, including finder’s and consulting fees, will be paid by us to our sponsor, executive officers and directors,
or any of their respective affiliates, for services rendered prior to or in connection with the completion of an initial business combination.
However, these individuals will be reimbursed for any out-of-pocket expenses related to identifying, investigating, negotiating and completing
an initial business combination. Our audit committee will review on a quarterly basis all payments that were made by us to our sponsor,
officers, directors or our or their affiliates.

In addition, in order to fund working capital deficiencies or finance
transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of
our officers and directors may, but are not obligated to, loan us funds as may be required on a non-interest basis. If we complete our
initial business combination, we may repay such loaned amounts out of the proceeds held in the Trust Account released to us. In the event
that the initial business combination does not close, we may use a portion of the working capital held outside the Trust Account to repay
such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible
into warrants of the post business combination entity at a price of $10.00 per warrant at the option of the lender. The warrants would
be identical to the Private Placement Warrants, including as to exercise price, exercisability and exercise period. Except as set forth
above, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. 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