NEW YORK - Denali Capital Acquisition Corp. (NASDAQ: DECA), currently trading at $11.83 with a market capitalization of $39.23 million, has secured an additional month, until January 11, 2025, to finalize a business combination by depositing $15,063.74 into its trust account. This move, announced Today, is supported by a convertible promissory note from Scilex Holding Company (NASDAQ: SCLX), which provided the funds without interest.
The note, with a principal amount up to $180,000, is convertible into Class A ordinary shares at $10.00 each upon the closing of a business combination. If not converted, it is repayable either when the business combination is effective or upon the company's liquidation. Denali Capital may draw down the remaining $104,708.30 from the note to fund future extensions if necessary. InvestingPro analysis indicates the company's weak financial health score of 1.67, with current ratio at 0.01, suggesting potential liquidity concerns.
Denali Capital, a blank check company incorporated in the Cayman Islands, is designed to facilitate mergers, asset acquisitions, or reorganizations with other businesses. The stock has shown strong momentum with a 59.89% return over the past six months, though InvestingPro analysis suggests the stock is currently overvalued. As usual, the forward-looking statements in the press release are subject to risks, uncertainties, and potential changes in circumstances, with the company not committed to updating any statements in light of new information or future events.
This information is based on a press release statement.
In other recent news, Denali Capital Acquisition Corp. has made significant strides in its operations. The company has secured a one-month extension for completing its initial business combination, depositing $15,063.74 into its trust account. Funding for this extension is sourced from a convertible promissory note issued to Scilex Holding Company, with a principal amount of up to $180,000. Denali Capital may draw down the remaining principal amount under the note to fund future extensions, if necessary.
In parallel developments, Denali Capital and Semnur Pharmaceuticals, a subsidiary of Scilex Holding Company, have announced their intention to merge. This merger, which values Semnur at $2 billion, aims to form a publicly traded biopharmaceutical entity focusing on non-opioid pain management therapies. Semnur's lead product, SP-102, a non-opioid injectable gel for the treatment of sciatica, is a highlight of this merger.
In a shift of strategy, Denali Capital has mutually agreed to terminate its merger agreement with Longevity Biomedical and is actively exploring alternative opportunities for an initial business combination. These are recent developments that reflect the dynamic business environment and the strategic decisions made by companies to advance their goals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.