Company: SMNR
Filing Date: 2025-08-08
Form Type: S-4/A
Source: 0001193125-25-177097
Chunk: 291

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-08
Form: S-4/A
Chunk 291
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penny stock” rules of the SEC, Denali recommended that shareholders remove the Redemption Limitation from the Current Denali Charter, because at that time Denali could rely on another exclusion which relates to Denali being listed on Nasdaq (Rule 3a51-1(a)(2))(the “Exchange Rule”). For so long as the public shares remained listed on Nasdaq, the public shares would not be deemed to be a “penny stock” under the Exchange Rule. However, Denali’s securities were delisted from Nasdaq on April 16, 2025, and commenced trading on the OTC Markets on April 17, 2025. Another exclusion from the “penny stock” rule that New Semnur could potentially rely on after the Closing is the requirement that the New Semnur Common Stock have a price of $5.00 or more (the “$5.00 Price Rule”). However, we cannot assure you that the New Semnur Common Stock will be listed on Nasdaq at the Closing or that the New Semnur Common Stock would comply with the $5.00 Price Rule. If New Semnur has less than $5,000,001 of net tangible assets upon the Closing, such that it does not meet the NTA Rule, if the New Semnur Common Stock is not listed on Nasdaq or another national securities exchange, either due to the New Semnur Common Stock not being approved for listing or due to a subsequent delisting of the New Semnur Common Stock, such that it does not satisfy the Exchange Rule, if the trading price of the New Semnur Common Stock is less than $5.00, such that it does not meet the $5.00 Price Rule, and if no other exclusion from the “penny stock” rules apply, then we expect that the New Semnur Common Stock would be a “penny stock” upon Closing. If the parties consummate the Business Combination at a time when the shares of New Semnur Common Stock are a “penny stock”, such event will require brokers trading in shares of New Semnur Common Stock to 160

adhere to more stringent rules. For example, brokers trading in shares of New Semnur Common Stock would be required to deliver a standardized risk disclosure document, which specifies information about penny stocks and the nature and significance of risks of the penny stock market. The broker dealer also must provide the customer with bid and offer quotations for the penny stock,