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, moving from June 11, 2025 to July 11, 2025. To facilitate this extension, the company deposited $874.78 into its trust account, funded through a convertible promissory note from Scilex Holding Company (NASDAQ: SCLX). The note has a maximum principal amount of $180,000, bears no interest, and is convertible into DECA Class A ordinary shares at $10.00 per share upon closing of a business combination. The remaining $56,920.74 of the note may be used for future monthly extensions if needed.

Positive

• None.

Negative

• SPAC seeking extension indicates potential difficulties in completing business combination within original timeline
• Small deposit amount of $874.78 suggests minimal shareholder retention
• Potential future dilution if promissory note is converted to shares

NEW YORK, NEW YORK, June 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 $874.78 to fund the one-month extension from June 11, 2025 to July 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 $56,920.74 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.

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FAQ

What is the new deadline for Denali Capital Acquisition Corp (DECA) to complete its business combination?

The new deadline for DECA to complete its business combination is July 11, 2025, extended from June 11, 2025.

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

DECA deposited $874.78 into the trust account to fund the one-month extension.

What are the terms of the convertible promissory note issued by DECA to Scilex Holding Company?

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

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

$56,920.74 remains available under the convertible promissory note for potential future monthly extensions.

What happens to the convertible promissory note if DECA liquidates?

The note becomes repayable upon liquidation of the company, before any conversion to shares can occur.