Company: SCLXW
Filing Date: 2025-12-16
Form Type: S-1
Source: 0001193125-25-319720
Chunk: 77

Company: Scilex Holding Co
Filing Date: 2025-12-16
Form: S-1
Chunk 77
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, reclassification or other similar transaction. On August 30, 2024, Legacy Semnur entered into the Semnur Business Combination Agreement with Denali and Denali Merger Sub, in connection with the Semnur Business Combination. The Semnur Business Combination was completed on September 22, 2025, pursuant to the Semnur Business Combination Agreement, and Denali Merger Sub merged with and into Legacy Semnur, the separate corporate existence of Denali Merger Sub ceased and Legacy Semnur became the surviving corporation and a wholly owned subsidiary of Denali. In connection with the consummation**

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of the Semnur Business Combination, Denali changed its name to “Semnur Pharmaceuticals, Inc. and Scilex became a majority owner thereof upon consummation of the Semnur Business Combination”. There is no assurance the Semnur Business Combination will actually maximize the value of Legacy Semnur and/or the SP-102asset for us or our stockholders. In addition, we remain liable for significant transaction costs, including legal, accounting and financial advisory fees. Our insurance policies are expensive and protect us only from some business risks, which leaves us exposed to significant uninsured liabilities. Although we endeavor to obtain appropriate insurance coverage for insurable risks that we identify, we do not carry insurance for all categories of risk that our business may encounter. Insurance coverage is becoming increasingly expensive. We have observed rapidly changing conditions in the insurance markets relating to nearly all areas of traditional corporate insurance. Such conditions have resulted in higher premium costs, higher policy deductibles and lower coverage limits. We may not be able to maintain insurance coverage at a reasonable cost, or in sufficient amounts to protect us against losses due to liability. While we maintain property, casualty and general liability coverage, we do not carry specific biological or hazardous waste insurance coverage and our insurance policies specifically exclude coverage for damages and fines arising from biological or hazardous waste exposure or contamination. Accordingly, in the event of contamination or injury, we could be held liable for damages or be penalized with fines in an amount exceeding our resources, and our clinical trials or regulatory approvals could be suspended. We do not know if we will be able to maintain existing insurance with adequate levels of coverage. Any significant uninsured liability may require us to pay substantial amounts, which would adversely affect our business, financial condition and results of operations. If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercial