Denali Capital Acquisition Corp. Announces Extension of Deadline to Complete Business Combination

Rhea-AI Summary

Denali Capital Acquisition Corp. (NASDAQ: DECA) has announced a one-month extension of its deadline to complete a business combination, extending from February 11, 2025, to March 11, 2025. To facilitate this extension, the company has deposited $15,063.74 into its trust account.

The deposit was funded through a convertible promissory note issued to Scilex Holding Company (NASDAQ: SCLX) with a maximum principal amount of $180,000. The note carries no interest and is convertible into DECA's Class A ordinary shares at $10.00 per share upon closing of a business combination. The remaining $74,608.82 of the note may be used for future monthly extensions if needed.

Positive

• Secured additional time to complete business combination
• Successfully obtained funding through convertible note with no interest
• Potential for future extensions with remaining note balance of $74,608.82

Negative

• Need for deadline extension suggests potential delays in completing business combination
• Additional dilution risk from potential conversion of promissory note
• Continued trust account deposits required for future extensions

News Market Reaction – DECA

%

1 alert

% News Effect

On the day this news was published, DECA declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, NEW YORK, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Denali Capital Acquisition Corp. (NASDAQ: DECA) (the “Company”) announced today that it has deposited into the Company’s trust account (the “Trust Account”) an aggregate of $15,063.74 to fund the one-month extension from February 11, 2025 to March 11, 2025. This deposit was funded via a convertible promissory note with a principal amount of up to $180,000 issued by the Company to Scilex Holding Company (Nasdaq: SCLX, “Scilex”), which bears no interest and is repayable on the earlier of the effective date of the consummation of the Company’s initial business combination or the date of the liquidation of the Company. Upon the closing of a business combination, the note is convertible, at Scilex’s discretion, into the Company’s Class A ordinary shares at a conversion price of $10.00 per share. Any future drawdowns of the remaining $74,608.82 principal amount available under the convertible promissory note are expected to fund future one-month extensions as necessary to provide additional time for the Company to complete a business combination.

About the Company

Denali Capital Acquisition Corp. is a blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities.

Forward-Looking Statements

This press release includes forward looking statements that involve risks and uncertainties. Forward-looking statements are subject to numerous conditions, risks and changes in circumstances, many of which are beyond the control of the Company, including those set forth in the “Risk Factors” section of the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

FAQ

How long is DECA's new deadline extension for completing its business combination?

DECA has extended its deadline by one month, from February 11, 2025, to March 11, 2025.

How much did DECA deposit into the trust account for the February 2025 extension?

DECA deposited $15,063.74 into its trust account for the one-month extension.

What are the terms of DECA's convertible promissory note with Scilex?

The note has a principal amount of up to $180,000, bears no interest, and is convertible into Class A ordinary shares at $10.00 per share upon business combination completion.

How much remains available under DECA's convertible promissory note for future extensions?

There is $74,608.82 remaining available under the convertible promissory note for potential future extensions.