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NEW YORK - Denali Capital Acquisition Corp. (NASDAQ:DECA), a special purpose acquisition company currently trading at $11.81 with a market capitalization of $40.39 million, has announced the approval of an extension for completing an initial business combination. On Monday, the company’s shareholders voted to amend the Articles to allow for a monthly extension for up to eight months, with the new deadline set for December 11, 2025. According to InvestingPro analysis, the stock has shown relatively low price volatility, with a beta of 0.33.
The decision to extend the deadline was made during an extraordinary general meeting held on April 11, 2025. In conjunction with this extension, Denali Capital deposited $874.78 into its trust account. This deposit equates to $0.02 per public share that was not redeemed in relation to the shareholder meeting and was funded through a convertible promissory note issued to Scilex Holding Company (NASDAQ:SCLX). The note bears no interest and is convertible into Class A ordinary shares at $10.00 per share upon the closing of a business combination, or repayable at the earlier of the business combination’s consummation or the company’s liquidation. InvestingPro data reveals the company’s financial health score stands at 2.12, rated as ’FAIR’, with current financial obligations exceeding liquid assets.
This extension provides Denali Capital with additional time to identify and complete a business combination. The company has disclosed that any future drawdowns from the remaining principal amount of the convertible promissory note may be used to fund these monthly extensions if necessary.
Denali Capital Acquisition Corp. was established as a blank check company for the purpose of effecting a merger, share exchange, asset acquisition, or other similar business combination with one or more businesses or entities. The full voting results of the shareholder meeting will be reported in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
This press release contains forward-looking statements involving risks and uncertainties, and actual events could differ from those projected. The information provided in this article is based on a press release statement from Denali Capital Acquisition Corp.
In other recent news, Denali Capital Acquisition Corp. announced that it has secured a one-month extension to finalize its initial business combination. This extension was made possible by a deposit of $15,063.74 into its trust account, funded through a convertible promissory note from Scilex Holding Company. The note, which has a principal amount of up to $180,000, carries no interest and is repayable upon the completion of Denali Capital’s business combination or its liquidation. If the business combination is successful, 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. Denali Capital retains the ability to draw down the remaining principal amount for additional one-month extensions if required. This financial strategy is designed to provide Denali Capital with more time to complete a business combination. The company has highlighted that this maneuver involves certain risks and uncertainties, as outlined in its recent SEC filings. No commitment has been made to publicly update any forward-looking statements, which may be affected by circumstances beyond the company’s control.
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