Denali Capital Acquisition Corp. Announces Extension of Trust Account
Overview
New York, New York, Oct. 11, 2024 – Denali Capital Acquisition Corp. (NASDAQ: DECA) has made a significant announcement today regarding its trust account. The Company has deposited an aggregate of $15,063.74 to fund a one-month extension from October 11, 2024, to November 11, 2024. This deposit was made possible through a convertible promissory note with a principal amount of up to $180,000 issued by the Company to Scilex Holding Company (Nasdaq: SCLX, “Scilex”).
Convertible Promissory Note
The convertible promissory note does not bear any interest and is repayable either upon the effective date of the Company’s initial business combination or the date of the liquidation of the Company. If a business combination occurs, the note is convertible into the Company’s Class A ordinary shares at a conversion price of $10.00 per share. The remaining principal amount available under the note is expected to fund future one-month extensions if needed.
Implications
This development gives Denali Capital Acquisition Corp. additional time to complete a business combination and provides financial support for future extensions. The partnership with Scilex Holding Company demonstrates a commitment to pursuing growth opportunities in the market.
Impact on Individuals
As an individual investor, you may see changes in the stock performance of Denali Capital Acquisition Corp. and Scilex Holding Company based on this announcement. It’s important to stay updated on further developments to make informed decisions about your investments.
Global Effects
The extension of the trust account and the convertible promissory note may have broader implications for the financial market as a whole. It signals the Company’s intentions to navigate current economic conditions and pursue strategic initiatives despite challenges.
Conclusion
In conclusion, Denali Capital Acquisition Corp.’s deposit into the Trust Account and partnership with Scilex Holding Company mark a significant step towards achieving its business objectives. The extension provides the Company with additional flexibility and resources to pursue growth opportunities and create value for its shareholders.
