Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 197

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1A
Chunk 197
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 consent include, among other things, (i) amending certain agreements, including the Stockholder
Agreement, the Merger Agreement, New Semnur’s certificate of incorporation or bylaws, Semnur’s 2024 Stock Option Plan, the
Stockholder Support Agreement and the Debt Exchange Agreement, in each case that adversely affect the rights of capital stock held by
Scilex in New Semnur (ii) approval of the issuance of capital stock of New Semnur that would result in Scilex holding less than 55% of
the outstanding shares or voting power of New Semnur, (iii) forming any subsidiary that is not wholly owned and controlled by New Semnur,
(iv) permitting any option grants to Scilex Insiders (as defined therein) pursuant to Semnur’s 2024 Stock Option Plan prior to
the execution of the Merger Agreement to be exercisable and (v) permitting certain compensation payments to Scilex Insiders (as defined
therein).

Liquidity,
Capital Resources and Going Concern Consideration

The
Company’s liquidity needs prior to the consummation of the IPO had been satisfied through a payment from the Sponsor of $25,000 (see
Note 5) for the founder shares and the loan under an unsecured promissory note (the “Promissory Note”) from the Sponsor of
up to $400,000 (see Note 5) which was fully repaid on April 12, 2022. Subsequent to the consummation of the IPO and sale of the
Private Placement Units on April 11, 2022, a total of $84,150,000 was placed in the Trust Account, and the Company had
$1,515,795 of cash held outside of the Trust Account, after payment of costs related to the IPO, and available for working capital
purposes. In connection with the IPO, the Company incurred $5,105,315 in transaction costs, consisting of $1,650,000 of underwriting
fees, $2,887,500 of deferred underwriting fees and $567,815 of other offering costs.

As
of December 31, 2024, all of the assets of $9,021,005 held in the Trust Account have been held solely in cash in an interest-bearing
demand deposit account at a bank. The Company intends to use substantially all of the