Company: SMNR
Filing Date: 2025-07-23
Form Type: S-4/A
Source: 0001193125-25-163401
Chunk: 424

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-23
Form: S-4/A
Chunk 424
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 adopt the issuance of up to 251,000,000 shares of New Semnur Common Stock in connection with the Business Combination.

Approval of this Nasdaq Proposal is a condition to the consummation of the Business Combination under the Merger Agreement, and this Nasdaq Proposal is one of the Condition Precedent Proposals. The Denali Board believes it is necessary to obtain this shareholder approval to ensure that New Semnur can comply with Nasdaq Listing Rules in connection with the issuance of shares in the Business Combination, contingent upon the approval of New Semnur’s listing application with Nasdaq and the listing of New Semnur Common Stock.

Under Nasdaq Listing Rule 5635(a), shareholder approval is required prior to the issuance of securities in connection with the acquisition of another company if such securities are not issued in a public offering and (A) have, or will have upon issuance, voting power equal to or in excess of 20% of the voting power outstanding before the issuance of common stock (or securities convertible into or exercisable for common stock); or (B) the number of shares of common stock to be issued is or will be equal to or in excess of 20% of the number of shares of common stock outstanding before the issuance of the stock or securities.

Under Nasdaq Listing Rule 5635(b), shareholder approval is required prior to the issuance of securities when the issuance or potential issuance will result in a “change of control” of the issuer. Although Nasdaq has not adopted any rule on what constitutes a “change of control” for purposes of Rule 5635(b), Nasdaq has previously indicated that the acquisition of, or right to acquire, by a single investor or affiliated investor group, as little as 20% of the common stock (or securities convertible into or exercisable for common stock) or voting power of an issuer could constitute a change of control.

Upon the consummation of the Business Combination and the Domestication, Denali expects to issue up to an estimated 251,000,000 shares of New Semnur Common Stock. See the section titled “The Merger Agreement — Merger Consideration.” Because the number of New Semnur Common Stock that Denali anticipates issuing as consideration in the Business Combination (i) will constitute more than 20% of the outstanding Denali Ordinary Shares and more than 20% of outstanding voting power prior to such issuance and (ii) will result in a change of control of Denali, Denali would be required to