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Denali Capital Acquisition Corp. (DECA0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net income of $672,381 for the nine months ended September 30, 2024, primarily due to income earned on investments held in the Trust Account of $1,491,320, offset by formation and operating expenses of $749,389 and interest expenses of $69,550.
As of September 30, 2024, Denali Capital had $8,889,119 in cash and investments held in the Trust Account and $14,287 in cash outside the Trust Account.
The company announced a proposed business combination with Semnur Pharmaceuticals, Inc., a wholly owned subsidiary of Scilex Holding Company, with a total equity value of $2,500,000,000 for Semnur.
The filing details a Sponsor Interest Purchase Agreement where Scilex agreed to purchase 500,000 Class B ordinary shares from the Sponsor for $2,000,000 and 300,000 shares of Scilex common stock.
Denali Capital faced a deficiency notice from Nasdaq (NDAQ+0.28%) regarding its Minimum Value of Listed Securities, but regained compliance on July 26, 2024.
The company has extended the deadline for completing a business combination to April 11, 2025, with provisions for monthly extensions.
Denali Capital has issued several convertible promissory notes to finance its operations, including notes to the Sponsor, FutureTech, and Scilex.
The filing notes that Denali Capital has a working deficit of $6,558,643 as of September 30, 2024, and management acknowledges substantial doubt about the company's ability to continue as a going concern through April 11, 2025, if a business combination is not consummated.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Denali Capital Acquisition Corp. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.