NEW YORK - Denali Capital Acquisition Corp. (NASDAQ: DECA), a special purpose acquisition company, has announced the deposit of $15,063.74 into its trust account to secure a one-month extension for completing its initial business combination. This extension moves the deadline from today, September 11, 2024, to October 11, 2024.
The funds for this extension come from a convertible promissory note issued to Scilex Holding Company (NASDAQ: SCLX), which carries a principal amount of up to $180,000. This note does not bear interest and is payable on the earlier of the business combination's effective date or the company's liquidation date. If a business combination is successfully closed, Scilex has the option to convert the note into Class A ordinary shares of Denali Capital at a conversion price of $10.00 per share.
Denali Capital Acquisition Corp. may draw down the remaining $149,899.52 principal amount under the convertible promissory note to fund future one-month extensions if needed. These steps are taken to provide the company with additional time to finalize a business combination.
Denali Capital Acquisition Corp. was established in the Cayman Islands as a blank check company, with the intention of merging with or acquiring one or more businesses or entities. The company's recent actions reflect its ongoing efforts to reach a business combination agreement within the extended timeframe.
The press release includes forward-looking statements, which are subject to various risks and uncertainties, as well as changes in circumstances that are largely outside the company's control. These statements have been made in accordance with the "Risk Factors" outlined in the company's most recent annual and quarterly reports filed with the Securities and Exchange Commission. Denali Capital has made it clear that it has no obligation to publicly update or revise any forward-looking statements to reflect changes in expectations or circumstances after the date of the press release. This news is based on a press release statement from Denali Capital Acquisition Corp.
In other recent news, Semnur Pharmaceuticals, a subsidiary of Scilex Holding Company, and Denali Capital Acquisition Corp. have announced their intention to merge, potentially valuing Semnur at $2 billion. The merger is aimed at forming a publicly traded biopharmaceutical entity focused on non-opioid pain management therapies. The highlight of this merger is Semnur's lead product, SP-102, a non-opioid injectable gel for the treatment of sciatica, currently in Phase 3 clinical trials and granted Fast Track status by the FDA.
Scilex will be the majority stakeholder in the new entity post-merger and has approved a resolution to potentially distribute up to 10% of its ownership interest in Semnur as a dividend, subject to SEC registration requirements. The merger is contingent on the negotiation of a definitive merger agreement, approval by both companies' boards, and SPAC shareholder approval.
In other developments, Denali Capital Acquisition Corp. has terminated its merger agreement with Longevity Biomedical, a decision that was mutual. Denali's management is now actively exploring alternative opportunities for an initial business combination. These recent developments reflect the dynamic nature of the business environment and the strategic decisions companies make to advance their goals.
InvestingPro Insights
As Denali Capital Acquisition Corp. (NASDAQ: DECA) navigates through the extension period for its initial business combination, potential investors and stakeholders are closely monitoring the company's financial health and market performance. InvestingPro data indicates a market capitalization of $38.26 million, reflecting the company's current valuation in the market. Despite the challenges, DECA has demonstrated a strong return over the last three months, with a 55.96% price total return in that period. This uptrend is further highlighted by a significant six-month price total return of 101.93%, showcasing the company's recent market momentum.
InvestingPro Tips reveal that DECA's stock is currently in overbought territory according to the Relative Strength Index (RSI), which could suggest a need for caution among traders looking for entry points. Additionally, the company's stock is known to trade with high price volatility, which could attract investors with a higher risk tolerance. With these market dynamics in play, Denali Capital's journey towards a successful business combination may be of particular interest to those monitoring the SPAC sector.
For a deeper analysis and more InvestingPro Tips on DECA, investors can visit https://www.investing.com/pro/DECA, where 8 additional tips are available, providing further insights into the company's financials and market performance. These tips can help inform investment decisions during this critical period for Denali Capital Acquisition Corp.
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