Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 15

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 number of shares
of common stock of New Semnur (the “New Semnur Common Shares”) equal to the Exchange Ratio (as defined in the Merger Agreement);
(ii) each share of Series A preferred stock of Semnur issued and outstanding immediately prior to the Effective Time will be automatically
converted into the right to receive, without interest, (a) one share of Series A preferred stock of New Semnur (the “New Semnur
Preferred Share”) and (b) one-tenth of one New Semnur Common Share, and (iii) subject to the Company’s receipt of the Option
Exchange Approval (as defined in the Merger Agreement), each option to purchase a share of Semnur common stock that is then outstanding
shall be converted into the right to receive an option to purchase a number of New Semnur Common Shares as determined by the Exchange
Ratio upon substantially the same terms and conditions as are in effect with respect to such option immediately prior to the Effective
Time, with the exercise price thereof adjusted by the Exchange Ratio. For purposes of the Merger Agreement, Semnur’s equity value
is $2,500,000,000.

On April 16, 2025, the Company entered into Amendment
No. 1 to the Merger Agreement with Semnur and Denali Merger Sub Inc. to update certain terms of their previously announced Business Combination.
Among other changes, the Amendment (i) addresses the delisting of the Company’s securities from Nasdaq and subsequent quotation
on the OTC Markets, (ii) requires an extension of Denali’s combination period through December 11, 2025 (or a date mutually agreed
by the parties), and (iii) extends the Outside Date for the Business Combination to September 30, 2025, subject to further extension if
an Extension Amendment is in effect.

9

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

Other Agreements

The Merger Agreement contemplates the execution
of various additional agreements and instruments, on or before the closing of the Merger, including, among others, the following:

Sponsor Support Agreement

Concurrently with the execution of the Merger
Agreement, the Sponsor and each of the Company’s directors and executive officers entered into a sponsor support agreement with
the Company and Semnur (the “Sponsor Support Agreement”), pursuant to which the Sponsor and each of Company’s directors
and executive officers has agreed