Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 278

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 278
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 no longer listed on an exchange, which would significantly hinder the ability to complete a business combination; |

| • |     | a limited availability of market quotations for Denali’s securities; |

| • |     | a determination that Denali’s securities are a “penny stock,” which will require brokers trading in the securities to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for the securities; |

| • |     | reduced liquidity of Denali’s securities; |

| • |     | a limited amount of news and analyst coverage in the future; |

| • |     | institutional investors losing interest in Denali’s securities; and |

| • |     | a decreased ability to issue additional securities or obtain additional financing in the future. |

Additionally, the National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Because our securities were delisted from Nasdaq, the Public Units, Denali Class A Ordinary Shares and Public Warrants do not qualify as covered securities under the Securities Act, and we are subject to regulation in each state in which we offer our securities. Trading on the OTC Markets is volatile and sporadic, which could depress the market price of Denali Class A Ordinary Shares and make it difficult for Denali shareholders to resell their shares. The market for Denali Class A Ordinary Shares is limited and persons who purchase Denali Class A Ordinary Shares may not be able to resell their shares at or above the purchase price paid by them. The Denali Class A Ordinary Shares are quoted on the OTCQB tier of the OTC Markets. Trading in stock quoted on the OTC Markets is often thin and characterized by wide fluctuations in trading prices, due to many factors, some of which may have little to do with Denali’s operations or business prospects. This volatility could depress the market price of the Denali Class A Ordinary Shares for reasons unrelated to operating performance. Moreover, the OTC Markets are not a stock exchange, and trading of securities on the OTC Markets is often more sporadic than the trading of securities listed on a quotation system like the Nasdaq or a stock exchange like the New York Stock Exchange. The OTC Markets are not liquid markets. There is currently only a limited public market for Denali Class A Ordinary Shares. Denali cannot assure you that an active public market for Denali Class A Ordinary