Company: SMNR
Filing Date: 2025-03-25
Form Type: PRER14A
Source: 0001013762-25-002297
Chunk: 26

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-03-25
Form: PRER14A
Chunk 26
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 level of trading activity in the secondary trading market for our securities; •a limited amount of news and analyst coverage; •a decreased ability to issue additional securities or obtain additional financing in the future; •a decreased ability to issue additional securities or obtain additional financing in the future; and •the Company may be deemed a less attractive merger partner for a target company or business. We also note that if Nasdaq delists the Company’s securities from trading on its exchange and the Company is not able to list its securities on another national securities exchange, it may affect the Company’s ability to consummate the business combination with Semnur. Under the Merger Agreement, the Company’s maintaining its listing on the Nasdaq and obtaining approval for listing of the shares of common stock and the warrants of the combined company is a condition precedent to closing of the business combination with Semnur. If such conditions are not satisfied, the business combination with Semnur will not be consummated unless such conditions are waived by the applicable parties or the parties enter into an amendment to the Merger Agreement to remove these as closing conditions. Additionally, the fact that the Company’s securities will not be listed on Nasdaq at the time of consummation of the business combination may present certain challenges to obtaining approval to list the securities of the combined company on Nasdaq, including by hindering the combined company’s ability to satisfy certain Nasdaq listing requirements, including minimum per share bid price and the market value of unrestricted publicly held shares. In addition, if the Company’s securities are delisted from Nasdaq, the Class A ordinary shares may become subject to the regulations of the SEC relating to the market for “penny stocks.” Under Rule 419 of the Securities Act, the term “blank check company” means a company that (i) is a development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person; and (ii) is issuing “penny stock,” as defined in Rule 3a51 -1under the Exchange Act. Under Rule 3a51 -1, the term “penny stock” means any equity security, unless it fits within certain enumerated exclusions including being listed on a national securities exchange, such as Nasdaq (Rule 3a51 -1(a)(2)) (the “ Exchange Rule”). The Company currently relies on the Exchange Rule to not be deemed a penny stock issuer (and consequently a “