Company: SMNR
Filing Date: 2025-08-08
Form Type: S-4/A
Source: 0001193125-25-177097
Chunk: 437

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-08
Form: S-4/A
Chunk 437
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 or more of the total value of all classes of Denali Ordinary Shares (a “U.S. Shareholder”) generally must include in income as a dividend the “all earnings and profits amount” attributable to the Denali Ordinary Shares it directly owns within the meaning of Treasury Regulation Section 1.367(b)–2(d). Complex attribution rules apply in determining whether a U.S. Holder owns 10% or more of the total combined voting power of all classes of Denali securities entitled to vote or 10% or more of the total value of all classes of Denali securities for U.S. federal income tax purposes, and all U.S. Holders are urged to consult their tax advisors with respect to these attribution rules.

A U.S. Shareholder’s earnings and profits amount with respect to its Denali Ordinary Shares is the net positive earnings and profits of the corporation (as determined under Treasury Regulation Section 1.367(b)–2(d)(2)) attributable to the Denali Ordinary Shares (as determined under Treasury Regulation Section 1.367(b)–2(d)(3)) but without regard to any gain that would be realized on a sale or exchange of such Denali Ordinary Shares.

Accordingly, under Treasury Regulation Section 1.367(b)–3(b)(3), a U.S. Shareholder is expected to be required to include in income as a deemed dividend all earnings and profits amount (as defined in Treasury Regulation Section 1.367(b)–2(d)) with respect to its Denali Ordinary Shares as a result of the Domestication. Any such U.S. Shareholder that is a corporation may, under certain circumstances, effectively be exempt from taxation on a portion or all of the deemed dividend pursuant to Section 245A of the Code. See “–Passive Foreign Investment Company Status” for a discussion of whether the amount of inclusion under Section 367(b) of the Code should be reduced by amounts required to be taken into account by a Non–Electing Shareholder (as defined below) under the proposed Treasury Regulations under Section 1291(f) of the Code.

B. U.S. Holders Who Own Less Than 10 Percent of the Voting Power and Value of Denali

A U.S. Holder that on the day of the Domestication beneficially owns (directly, indirectly or constructively) Denali Ordinary Shares with a fair market value of $50,000 or more but less than (i) ten percent (10%) of the total combined voting power of all