Company: SMNR
Filing Date: 2025-07-23
Form Type: S-4/A
Source: 0001193125-25-163401
Chunk: 286

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-23
Form: S-4/A
Chunk 286
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structure its operations, or incur impairment or other charges that could result in losses. Even if Denali’s due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with Denali’s preliminary risk analysis. Even though these charges may be non–cash items and may not have an immediate impact on Denali’s liquidity, the fact that Denali reports charges of this nature could contribute to negative market perceptions about New Semnur’s or Denali’s securities. In addition, charges of this nature may cause Denali to be unable to obtain future financing on favorable terms or at all. Accordingly, any Denali shareholder who chooses to remain a stockholder of New Semnur following the Business Combination could suffer a reduction in the value of their shares. Such stockholders are unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to the breach by Denali’s officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to successfully bring a private claim under securities laws that the proxy solicitation relating to the Business Combination contained an actionable material misstatement or material omission.

Denali’s securities were delisted from Nasdaq on April 16, 2025 and commenced trading on the OTC Markets on April 17, 2025. Additionally, while an application has been submitted to list the New Semnur Common Stock and New Semnur Warrants on Nasdaq, approval has not been received, and such approval is not a condition to the Closing. Trading on the OTC Markets could adversely affect the liquidity and market price of Denali’s and New Semnur’s securities.

On October 2, 2024, Denali received the Notice from the Staff notifying Denali that it was not in compliance with the MVLS Rule, which requires Denali to maintain a minimum MVLS of $50.0 million, and the Total Assets Rule, which requires Denali to maintain total assets and total revenue of at least $50.0 million each for the most recently completed fiscal year or two of the three most recently completed fiscal years, for continued listing on the Nasdaq Global Market. The Notice stated that Denali had 180 calendar days, or until March 31, 2025, to regain compliance.**

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**On April 2, 2025, Denali received the Staff’s Determination stating that Den