Company: SMNR
Filing Date: 2025-03-25
Form Type: PRER14A
Source: 0001013762-25-002297
Chunk: 27

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-03-25
Form: PRER14A
Chunk 27
---
blank check company” under Rule 419). If the Company is deemed a “blank check company” as defined under Rule 419, it may become subject to additional restrictions on the trading of its securities. Among those restrictions is that brokers trading in the securities of a blank check company under Rule 419 adhere to more stringent rules, including being subject to the depository requirements of Rule 419. 16 The “penny stock” rules are burdensome and may reduce the trading activity for shares of the Class A ordinary shares. For example, brokers trading in the Company’s Units or Class A ordinary shares 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 Class A ordinary shares are a “penny stock,” these disclosure requirements may have the effect of reducing the trading activity in the secondary market for the Company’s securities. If the Class A ordinary shares are subject to the “penny stock” rules, the holders of our securities may find it more difficult to sell their securities. This may also result in us no longer being an attractive merger partner if our securities are no longer listed on an exchange, which may impact our ability to complete the business combination with Semnur. The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” If the Company’s securities are no longer listed on Nasdaq, they would not qualify as “covered securities” under such statute and the Company would be subject to regulation in each state in which it offers its securities. As we have not registered our securities in any state and do not currently plan to undertake such registrations, this could further restrict the liquidity of our securities. 17 BACKGROUND General We are a blank check company incorporated on January 5, 2022 as a Cayman Islands exempted company for the purpose of effect