Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 12

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 (“ASC”) Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”).
The Company will not redeem Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001 (so that
it does not then become subject to the “penny stock” rules of the Securities and Exchange Commission (the “SEC”))
either prior to or upon consummation of an initial Business Combination. However, a greater net tangible asset or cash requirement may
be contained in the agreement relating to the Business Combination. In shareholders’ meeting held on October 11, 2023, it was resolved
to eliminate this limitation that the Company may not redeem Public Shares in an amount that would cause the Company’s net tangible
assets to be less than $5,000,001 (the “Redemption Limitation Amendment”). If the Company is unable to complete the initial
Business Combination within the Combination Period, including Extension (refer to Note 9), the Company will: (i) cease all operations
except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the
Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest
earned on the funds held in the Trust Account and not previously released to the Company to pay the Company’s franchise and income
taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then-issued and outstanding
Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive
further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption,
subject to the approval of the Company’s remaining shareholders and its board of directors, dissolve and liquidate, subject in each
case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable
law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless
if the Company fails to complete the Business Combination within the Combination Period.

7

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

The founder shares are designated as Class B ordinary
shares (the “founder shares”) and, except as described below,