Company: SMNR
Filing Date: 2025-07-23
Form Type: S-4/A
Source: 0001193125-25-163401
Chunk: 438

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-23
Form: S-4/A
Chunk 438
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, such holder generally must recognize gain (but not loss) with respect to New Semnur Common Stock received in exchange for its Denali Ordinary Shares pursuant to the Domestication. Any such gain generally would be equal to the excess of the fair market value of such New Semnur Common Stock received over the U.S. Holder’s adjusted tax basis in the Denali Ordinary Shares surrendered in exchange therefor. Subject to the PFIC rules discussed below, such gain generally would be capital gain and generally should be long–term capital gain if the U.S. Holder held the Denali Ordinary Shares for longer than one year.

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**In lieu of recognizing any gain as described in the preceding paragraph, a U.S. Holder may elect to include in income all earnings and profits amount attributable to its Denali Ordinary Shares under Section 367(b). There are, however, strict conditions for making this election, as enumerated in the Treasury Regulations.

U.S. Holders are strongly urged to consult with their own tax advisors regarding whether to make this election and if the election is determined to be advisable, the appropriate filing requirements with respect to this election. 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.

A U.S. Holder (who is not a U.S. Shareholder) that beneficially owns (directly, indirectly or constructively) Denali Ordinary Shares with a fair market value of less than $50,000 generally would not be required to recognize any gain or loss or include any part of all earnings and profits amount in income under Section 367(b) of the Code in connection with the Domestication.

If the Domestication Does Not Qualify as a Reorganization

If the Domestication fails to qualify as a reorganization, and subject to the PFIC rules discussed below under the heading “–Passive Foreign Investment Company Status,” a U.S. Holder that exchanges its Denali securities for Domesticated Denali securities in the Domestication is expected to recognize gain or loss equal to the difference between (i) the fair market value of the Domesticated Denali securities received and (ii) the U.S. Holder’s adjusted tax basis in the Denali securities exchanged therefor. A U.S. Holder’s aggregate