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, from September 11, 2024, to October 11, 2024. To fund this extension, the company has deposited $15,063.74 into its trust account. This deposit was financed through a convertible promissory note issued to Scilex Holding Company (NASDAQ: SCLX) with a principal amount of up to $180,000.

The note is interest-free and convertible into DECA's Class A ordinary shares at $10.00 per share upon closing a business combination. The remaining $149,899.52 of the note may be used for future one-month extensions if needed. This move provides DECA with additional time to finalize a potential business combination.

Positive

• Extension provides more time to complete a business combination
• Funding secured without immediate cash outlay through convertible note
• Potential for future extensions with remaining note balance

Negative

• Delay in completing business combination may indicate difficulties
• Potential dilution for existing shareholders if note is converted
• Additional costs incurred for extension

NEW YORK, NEW YORK, Sept. 11, 2024 (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 September 11, 2024, to October 11, 2024. 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 $149,899.52 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

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

The new deadline for Denali Capital Acquisition Corp (DECA) to complete its business combination is October 11, 2024, extended from the previous date of September 11, 2024.

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

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

Who provided the funding for DECA's extension?

The funding for DECA's extension was provided by Scilex Holding Company (NASDAQ: SCLX) through a convertible promissory note.

What are the terms of the convertible promissory note issued by DECA?

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