Company: SMNR
Filing Date: 2025-08-12
Form Type: S-4/A
Source: 0001193125-25-178821
Chunk: 285

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-12
Form: S-4/A
Chunk 285
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Denali has no obligation to notify holders of the warrants that they have become eligible for redemption. However, pursuant to the Warrant Agreement, in the event Denali decides to redeem the warrants, Denali is required to mail notice of such redemption to the registered warrant holders not less than 30 days prior to the redemption date. The warrants may be exercised any time after notice of redemption is given and prior to the redemption date. None of the Denali Private Placement Warrants will be redeemable by Denali so long as they are held by the Sponsor or its permitted transferees; provided the Denali Private Placement Warrants may be redeemed in accordance with the Warrant Agreement (and must be redeemed if the public warrants are being redeemed) if the Reference Value equals or exceeds $10.00 per share and does not equal or exceed $16.50 per share.

If Denali’s due diligence investigation of Semnur was inadequate, then shareholders of Denali following the Business Combination could lose some or all of their investment.

Even though Denali conducted a due diligence investigation of Semnur, Denali cannot be sure 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