Company: SMNR
Filing Date: 2025-04-21
Form Type: S-4/A
Source: 0001193125-25-087342
Chunk: 281

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-21
Form: S-4/A
Chunk 281
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ur 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 157

“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 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, the compensation of the broker dealer and any salesperson in the transaction, and monthly account statements indicating the market value of each penny stock held in the customer’s account. In addition, the penny stock rules require that, prior to effecting a transaction in a penny stock not otherwise exempt from those rules, the broker dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. If the New Semnur Common Stock is a “penny stock”, these disclosure requirements may have the effect of reducing the trading activity in the secondary market for the New Semnur Common Stock. The penny stock rules are burdensome and may reduce purchases of any offerings and reduce the trading activity for shares of New Semnur Common Stock. If the shares of New Semnur Common Stock are subject to the penny stock rules, the holders of such shares of New Semnur Common Stock may find it more difficult to sell their shares.

Because the market price of shares of New Semnur Common Stock will fluctuate, New Semnur stockholders cannot be sure of the value of the Business Combination consideration they will receive.

The market value of New Semnur securities at the effective time of the Business Combination may vary significantly from their respective values on the date the Merger Agreement was executed or at other dates. Because the Exchange Ratio with respect to the shares of New Semnur Common Stock to be issued in the Business Combination is fixed and will not be adjusted to reflect any changes in the market value of shares of Denali Class A Ordinary Shares, the market value of the shares of New Semnur