Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 426

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 426
---
 require taxable gain recognition by a Non–Electing Shareholder with respect to its exchange of Denali securities for Domesticated Denali securities in the Domestication if Denali were classified as a PFIC at any time during such U.S. Holder’s holding period in Denali securities. Any such gain generally would be treated as an “excess distribution” made in the year of the Domestication and subject to the special tax and interest charge rules discussed above under “–Passive Foreign Investment Company Status–Definition and General Taxation of a PFIC.” In addition, the Proposed Regulations would provide coordinating rules with Section 367(b) of the Code, whereby, if the gain recognition rule of the Proposed Regulations applied to a disposition of PFIC stock that results from a transfer with respect to which Section 367(b) requires the shareholder to recognize gain or include an amount in income as a distribution under Section 301 of the Code, the gain realized on the transfer is taxable as an excess distribution under Section 1291 of the Code, and the excess, if any, of the amount to be included in income under Section 367(b) over the gain realized under Section 1291 is taxable as provided under Section 367(b). See “– U.S. Holders–U.S. Federal Income Tax Consequences of the Domestication to U.S. Holders of Denali Securities–If the Domestication Qualifies as a Reorganization –Effect of Section367 of the Code on U.S. Holders of Denali Ordinary Shares.” The Proposed Regulations generally should not apply to an Electing Shareholder with respect to its Denali Ordinary Shares for which a timely QEF election, a QEF election along with a purging election, or mark–to–market election is made. An Electing Shareholder may, however, be subject to the rules discussed below under the section titled “– U.S. Holders–U.S. Federal Income Tax Consequences of the Domestication to U.S. Holders of Denali Securities–If the Domestication Qualifies as a Reorganization–Effect of Section367 of the Code on U.S. Holders of Denali Ordinary Shares.”

<div align='center'>258</div>

**The rules dealing with PFICs and with the QEF election and purging election (or a mark–to–market election) are very complex and are affected by various factors in addition to those described above. Accordingly, a U.S. Holder of Denali securities should consult its own tax advisor concerning