Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 87

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 87
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 Semnur Common Shares”). In accordance with the terms and subject to the conditions of the Merger Agreement, following
the Domestication and at the effective time of the Merger (the “Effective Time”): (i) each share of common stock of
Semnur issued and outstanding immediately prior to the Effective Time will be automatically converted into the right to receive, without
interest, a number of New Semnur Shares equal to the Exchange Ratio (as defined in the Merger Agreement); (ii) each share of preferred
stock of Semnur issued and outstanding immediately prior to the Effective Time will be automatically converted into the right to receive,
without interest, (a) one share of Series A preferred stock of New Semnur (the “New Semnur Preferred Share”) and (b) one-tenth
of one New Semnur Common Share, and (iii) subject to the Company’s receipt of the Option Exchange Approval (as defined in the Merger
Agreement), each option to purchase a share of Semnur common stock that is then outstanding shall be converted into the right to receive
an option to purchase a number of New Semnur Common Shares as determined by the Exchange Ratio upon substantially the same terms and conditions
as are in effect with respect to such option immediately prior to the Effective Time, with the exercise price thereof adjusted by the
Exchange Ratio. For purposes of the Merger Agreement, Semnur’s equity value is $2,500,000,000. 

29

The Merger Agreement contemplates
the execution of various additional agreements and instruments, on or before the closing of the Merger, including, among others, the following: 

Concurrently with the execution
of the Merger Agreement, the sponsor and each of the Company’s directors and executive officers entered into a sponsor support agreement
with the Company and Semnur (the “Sponsor Support Agreement”), pursuant to which the sponsor and each of Company’s directors
and executive officers has agreed to, among other things: (i) vote in favor of the Parent Shareholder Approval Matters (as defined in
the Merger Agreement) and in favor of any proposal in respect of an Extension Amendment (as such terms are defined in the Merger Agreement);
(ii) vote against (or otherwise withhold written consent of, as applicable) any “Business Combination” (as such term is defined
in Denali’s organizational documents) or any proposal relating thereto (in each case, other than as