Denali Capital Acquisition Corp. Announces Shareholder Approval of Extension of Deadline to Complete Business Combination

Rhea-AI Summary

Denali Capital Acquisition Corp. (NASDAQ: DECA) announced that shareholders have approved amendments to extend the deadline for completing a business combination from July 11, 2024, to April 11, 2025. The extension is set on a monthly basis, up to nine times, each by an additional month. The Company has deposited $15,063.74 into its trust account to fund the one-month extension to August 11, 2024, through a convertible promissory note with a principal amount up to $180,000 from the Sponsor. This note bears no interest and is repayable either upon a business combination's completion or the company's liquidation. Upon a successful business combination, the note can convert into Class A ordinary shares at $10.00 per share. Future drawdowns will likely fund subsequent one-month extensions. A detailed voting result will be filed with the SEC in a Current Report on Form 8-K.

Positive

• Shareholders approved an extension of the deadline to complete a business combination, providing the company with up to 9 additional months.
• The extension funding was secured through a convertible promissory note, showing the Sponsor's confidence and support.
• Convertible note terms are favorable with no interest and a conversion price of $10.00 per share, potentially beneficial for equity value.

Negative

• The need for an extension may indicate challenges in securing a business combination within the original timeframe.
• Convertible note increases potential dilution for existing shareholders upon conversion at $10.00 per share.
• The company must draw down additional funds to further extend the deadline, potentially increasing financial strain if a business combination is delayed.

NEW YORK, NEW YORK, July 10, 2024 (GLOBE NEWSWIRE) -- Denali Capital Acquisition Corp. (NASDAQ: DECA) (the “Company”) announced today that the Company’s shareholders voted in favor of approving amendments to the Company’s amended and restated memorandum and articles of association (the “Articles”) to extend the date by which the Company must consummate an initial business combination from July 11, 2024 to April 11, 2025 by electing to extend the date to consummate an initial business combination on a monthly basis for up to nine times by an additional one month each time (the “Extension”).

The Company also announced today that it has deposited into the Company’s trust account (the “Trust Account”) an aggregate of $15,063.74, representing the lesser of (a) $20,000 or (b) $0.02 per public share that remains outstanding and is not redeemed prior to the one-month extension, to fund the one-month extension from July 11, 2024, to August 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 the Sponsor, which bears no interest and is repayable on the earlier of the effective date of the consummation of the Company’s initial business combination and the date of the liquidation of the Company. Upon the closing of a business combination, the note is convertible, at the Sponsor’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 $164,963.26 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.

A Current Report on Form 8-K disclosing the full voting results will be filed with the U.S. Securities and Exchange Commission (the “SEC”).

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.

Participants in the Solicitation

The Company, its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company’s shareholders in respect of the Extension. Information regarding the Company’s directors and executive officers is available in its Annual Report on Form 10-K filed with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests are contained in the definitive proxy statement relating to the Shareholder Meeting (the “Definitive Proxy Statement”).

No Offer or Solicitation

This communication shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

Additional Information and Where to Find It

On June 28, 2024, the Company filed the Definitive Proxy Statement with the SEC in connection with its solicitation of proxies for the Shareholder Meeting. INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND OTHER DOCUMENTS THE COMPANY FILES WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be able to obtain free copies of the Definitive Proxy Statement (including any amendments or supplements thereto) and other documents filed with the SEC through the web site maintained by the SEC at www.sec.gov or by directing a request to the Company’s proxy solicitor, Advantage Proxy, Inc., at P.O. Box 10904 Yakima, WA 98909, Toll-Free (877) 870-8565 or Collect (206) 870-8565, Email: ksmith@advantageproxy.com.

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. to complete its business combination?

The new deadline is April 11, 2025, with monthly extensions up to nine times.

How much money has DECA deposited for the one-month extension to August 11, 2024?

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

What is the conversion price for the convertible promissory note issued by Denali Capital Acquisition Corp. to the Sponsor?

The conversion price is $10.00 per share.

How will the convertible promissory note affect DECA's shares?

The note may convert into Class A ordinary shares, potentially diluting existing shareholders at a conversion price of $10.00 per share.

What are the terms of the promissory note issued to fund DECA's extension?

The note has a principal amount of up to $180,000, bears no interest, and is repayable upon the completion of a business combination or the company's liquidation.