Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 10

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 substantially
all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The stock exchange listing rules
require that the Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least 80%
of the value of the assets held in the Trust Account (excluding any deferred underwriters’ fees and taxes payable on the interest
income earned on the Trust Account). The Company will only complete a Business Combination if the post-Business Combination company owns
or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest
in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. There
is no assurance that the Company will be able to successfully effect a Business Combination.

Business
Combination

The Company will provide the holders of the outstanding
Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Public Shares either (i)
in connection with a shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer in connection with
the Business Combination. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a
tender offer will be made by the Company. The Public Shareholders will be entitled to redeem their Public Shares for a per-share price,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation
of the initial Business Combination (initially anticipated to be $10.20 per Public Unit, plus any pro rata interest then in the Trust
Account, net of taxes payable). The Public Shares subject to redemption were recorded at a redemption value and classified as temporary
equity upon the completion of the IPO in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting
Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”).
The Company will not redeem Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001 (so that
it does not then become subject to the “penny stock” rules of the Securities and Exchange Commission (the “SEC”))
either prior to or upon consummation of an initial Business Combination. However, a greater net tangible asset or cash requirement may
be contained