Company: SMNR
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001193125-25-179226
Chunk: 422

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 422
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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 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 classes of Denali Ordinary Shares entitled to vote and (ii) ten percent (10%) of the total value of all classes of Denali Ordinary Shares
generally must either recognize gain with respect to the Domestication or, in the alternative, elect to recognize the “all earnings and profits” amount, in each case as described below.

Unless a U.S. Holder makes the “all earnings and profits election” as described below, 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