Company: SMNR
Filing Date: 2025-08-12
Form Type: S-4/A
Source: 0001193125-25-178821
Chunk: 242

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-12
Form: S-4/A
Chunk 242
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 decline. If one or more of these analysts cease coverage of New Semnur or fail to publish reports on it regularly, New Semnur could lose visibility in the financial markets, which in turn could cause its stock price or trading volume to decline.

Raising additional capital may cause dilution to New Semnur’s existing stockholders, restrict its operations or require it to relinquish rights to its product candidate.

New Semnur may issue additional equity securities to fund future expansion and pursuant to equity incentive or employee benefit plans. It may also issue additional equity for other purposes. These securities may have the same rights as New Semnur Common Stock or, alternatively, may have dividend, liquidation or other preferences to New Semnur Common Stock, including New Semnur Common Stock issued in connection with the Business Combination. The issuance of additional equity securities will dilute the holdings of existing stockholders and may reduce the share price of New Semnur Common Stock.

Pursuant to the Registration Rights Agreement to be entered into in connection with the Business Combination, certain stockholders of Denali and Semnur can each demand that New Semnur register their registrable securities under certain circumstances and will each also have piggyback registration rights for these securities. In addition, following the Closing, New Semnur will be required to file and maintain an effective registration statement under the Securities Act covering such securities and certain of its other securities. The registration of these securities will permit the public sale of such securities, subject to certain contractual restrictions imposed by the Registration Rights Agreement and the Merger Agreement. The presence of these additional shares of common stock trading in the public market may have an adverse effect on the market price of New Semnur’s securities.

If New Semnur raises additional funds through collaboration, licensing or other similar arrangements, New Semnur may have to relinquish valuable rights to its product candidate, or grant licenses on terms unfavorable to New Semnur. If adequate funds are not available, New Semnur’s ability to achieve profitability or to respond to competitive pressures would be significantly limited and New Semnur may be required to delay, significantly curtail or eliminate the development of its product candidate.

New Semnur’s principal stockholders, directors and executive officers will own a significant percentage of its capital stock, and have significant influence over New Semnur’s management.

Following the closing of the Business Combination, New Semnur’s directors, executive officers, holders of 5% or more of New Semnur