Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 276

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 276
---
 that this diligence uncovered all material issues that may be present inside Semnur or its business, or that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors outside of Semnur’s and Denali’s control will not later arise. As a result, Denali may be forced to later write–down or write–off assets, restructure its operations, or incur impairment or other charges that could result in losses. Even if Denali’s due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with Denali’s preliminary risk analysis. Even though these charges may be non–cash items and may not have an immediate impact on Denali’s liquidity, the fact that Denali reports charges of this nature could contribute to negative market perceptions about New Semnur’s or Denali’s securities. In addition, charges of this nature may cause Denali to be unable to obtain future financing on favorable terms or at all. Accordingly, any Denali shareholder who chooses to remain a stockholder of New Semnur following the Business Combination could suffer a reduction in the value of their shares. Such stockholders are unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to the breach by Denali’s officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to successfully bring a private claim under securities laws that the proxy solicitation relating to the Business Combination contained an actionable material misstatement or material omission.

Denali received a written notice from Nasdaq that it is not in compliance with the MVLS Rule, requiring Denali to maintain a minimum MVLS of $50.0 million, and the Total Assets Rule, requiring Denali to maintain total assets and total revenue of at least $50.0 million each for the most recently completed fiscal year or two of the three most recently completed fiscal years, for continued listing on the Nasdaq Global Market. As such, there can be no assurance that New Semnur’s securities will be approved for listing on Nasdaq, or if approved, will continue to be so listed following the closing of the Business Combination, or that New Semnur will be able to comply with the continued listing standards of Nasdaq. Denali’s securities may not continue to be listed on Nasdaq in the future, which could limit investors’ ability to make transactions in Denali’s securities and subject Denali to