Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 57

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 57
---
ilex Series 1 Preferred Stock, then following the closing of the Business Combination, Scilex, as the controlling stockholder of Semnur prior to such closing, (i) in the no redemptions scenario will own approximately (a) 83.2% of New Semnur in the form of New Semnur Common Stock and (b) 2.8% of New Semnur in the form of New Semnur Series A Preferred Stock, which will give Scilex 86.0% of the voting power of New Semnur’s capital stock and (b) in the maximum redemptions scenario, will own approximately (a) 83.2% of New Semnur in the form of New Semnur Common Stock and (ii) 2.8% of New Semnur in the form of New Semnur Series A Preferred Stock, which will give Scilex 86.0% of the voting power of New Semnur’s capital stock. In each redemption scenario, Scilex will still be the single largest stockholder of New Semnur following the closing of the Business Combination. As noted above, the Scilex Board has not yet set a payment date (which will be on or before June 10, 2025) 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.

| Q: | What happens if a substantial number of Denali public shareholders vote in favor of the Business Combination proposal and all of the Denali public shareholders exercise their redemption rights? |

| A: | Denali public shareholders may vote in favor of the Business Combination and still exercise their redemption rights. Accordingly, subject to the satisfaction of the closing conditions set forth in the Merger Agreement (described elsewhere in the proxy statement/prospectus), the Business Combination may be consummated even though the funds available from the Trust Account and the number of Denali public shareholders are reduced as a result of redemptions by the Denali public shareholders. |

| Q: | Did the Denali Board obtain a third-party valuation or fairness opinion in determining whether to proceed with the Business Combination? |

| A: | Yes. On July 8, 2024, the audit committee of the Denali Board (the “Denali Audit Committee”) retained CB Capital Partners, Inc.