Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 6

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 6
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 is well positioned to identify attractive business combination opportunities with a compelling industry
backdrop and an opportunity for transformational growth. Our team’s objectives are to generate attractive returns for shareholders
and enhance value through improving operational performance of the acquired company. In the process of identifying Semnur as a target
for the Business Combination, we broadly focused on potential targets that we believed (i) had attractive long-term growth potential,
(ii) had a core product that was or had the potential to be competitively positioned within the applicable industry and (iii) had an
experienced management team with an attractive business plan that would benefit from being a public company due to the potential for
access to a broader source of capital and greater visibility. In addition, Denali also considered the development stage of potential
targets’ corresponding industries and any relevant regulatory risks associated with such target businesses and their respective
industries.

Business
Combination Criteria

Consistent
with our business strategy, we have identified the following general criteria and guidelines that we believe are important in evaluating
prospective target businesses. We used these criteria and guidelines in evaluating acquisition opportunities, which we believe Semnur
satisfied, as we looked to identify target companies that:

●are
fundamentally sound but are underperforming their potential;

●exhibit
                                            unrecognized value or other characteristics that we believe have been misevaluated by the
                                            marketplace;

●are
                                            at an inflection point where we believe we can drive improved financial performance;

●offer
                                            opportunities to enhance financial performance through organic initiatives and/or inorganic
                                            growth opportunities;

●can
                                            benefit from our founders’ knowledge of the target sectors, proven collection of operational
                                            strategies and tools, and past experiences in profitability and rapidly scaling businesses;

●are
                                            valued attractively relative to their potential for operational improvement; and

●offer
                                            an attractive potential return for our shareholders, weighing potential growth opportunities
                                            and operational improvements in the target business against any identified downside risks.

These
criteria and guidelines are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination
may be based, to the extent relevant, on these general criteria and guidelines as well as other considerations, factors and criteria
that our management may deem relevant. We believe that Semnur met the above criteria, as described in the Semnur Disclosure Statement.

Business
Combination with Longevity

On
January 25, 2023, we entered into the Longevity