Denali Capital Acquisition Corp. Extends Deadline for Merger

Denali Capital Acquisition Corp. Extends Business Combination Deadline

In a recent announcement, Denali Capital Acquisition Corp. (NASDAQ: DECA) revealed that it has made provisions to extend its deadline to finalize a business combination. The company has deposited a total of $15,063.74 into its trust account, allowing for an extension from January 11 to February 11.

Details of the Extension Funding

This extension is being funded through a convertible promissory note issued to Scilex Holding Company (NASDAQ: SCLX). The note has a principal amount of up to $180,000 and carries no interest. It is payable upon either the successful closing of the initial business combination or the Company's liquidation, whichever occurs first.

Conversion Terms for the Promissory Note

Upon the successful completion of the business combination, Scilex has the option to convert the note into Denali Capital's Class A ordinary shares at a conversion price of $10.00 per share. This flexibility allows Scilex to participate in the future success of Denali once the business combination is finalized.

Future Funding Needs

The remaining balance of $89,672.56 available under this convertible promissory note can be utilized for future extension periods, if additional time becomes necessary for Denali to finalize its business combination.

About Denali Capital Acquisition Corp.

Denali Capital Acquisition Corp. operates as a blank check company with a clear mission to engage in mergers, share exchanges, asset acquisitions, or similar activities. Formed as an exempted company in the Cayman Islands, Denali aims to identify potential business opportunities within various sectors and bring them to fruition.

The Importance of Business Combinations

The process of completing a business combination is crucial for growth-oriented companies like Denali Capital. By merging with or acquiring other businesses, Denali can enhance its portfolio and create new opportunities for investors.

Recent Market Trends and Company Strategies

As markets evolve, Denali remains poised to adapt its strategies in response to emerging trends. The company is strategically positioning itself to capitalize on attractive opportunities, thereby enhancing shareholder value.

Ongoing Developments in the Investment Landscape

In today’s dynamic investment climate, adaptability is key. Denali's initiatives show its commitment to not only meeting deadlines but also to pursuing innovative paths that underline its reputational strength.

Frequently Asked Questions

What is the purpose of Denali Capital Acquisition Corp.?

Denali Capital Acquisition Corp. is designed to facilitate mergers and similar business combinations, seeking growth opportunities in various sectors.

How does the convertible promissory note work?

The note allows Scilex to lend funds to Denali, which can later be converted into shares at a set price, benefiting both parties if the business combination is successful.

Why has Denali extended its deadline?

Denali extended its deadline to allow more time to complete its intended business combination, ensuring all necessary processes can be finalized.

What is the significance of the trust account deposit?

The deposit into the trust account helps secure additional time for negotiations and processes necessary for the business combination, reflecting Denali's proactive approach.

How can investors benefit from Denali's actions?

Investors may benefit from enhanced growth opportunities as Denali completes its business combination, leading to potential value creation in their investment portfolios.

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