Wed, Apr 2, 10:03 AM (25 days ago)
### Summary of Denali Capital Acquisition Corp. (DECA) **Financial Performance:** - **Revenue:** Denali Capital Acquisition Corp. (DECA) has not generated any revenue since its inception on January 5, 2022, as it has not commenced any operations. The company is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. - **Net Income:** For the year ended December 31, 2024, DECA reported a net loss of $167,306, primarily due to formation and operating expenses of $1,649,106 and interest expense of $96,242, partially offset by income earned on investments held in the Trust Account of $1,578,042. In contrast, for the year ended December 31, 2023, DECA reported a net income of $632,536, primarily due to income earned on investments held in the Trust Account of $3,843,271, partially offset by formation and operating expenses of $3,173,826 and interest expense of $36,909. - **Operating Expenses:** DECA's operating expenses for the year ended December 31, 2024, were $1,649,106, consisting of formation and operating costs and interest expense. For the year ended December 31, 2023, operating expenses were $3,173,826. **Earnings per Share (EPS):** - **Basic and Diluted EPS:** For the year ended December 31, 2024, DECA reported a basic and diluted net loss per redeemable ordinary share of $0.40 and a basic and diluted net income per non-redeemable ordinary share of $0.32. For the year ended December 31, 2023, DECA reported a basic and diluted net loss per redeemable ordinary share of $0.50 and a basic and diluted net income per non-redeemable ordinary share of $0.26. **Strategic Overview:** - **Business Strategy:** DECA's business strategy is to identify and complete its initial business combination with a company within the technology, hospitality, or consumer services sector. The company's selection process leverages its team's broad and deep relationship network, unique industry experiences, and strong deal-sourcing capabilities. DECA aims to generate attractive returns for shareholders and enhance value through improving the operational performance of the acquired company. - **Business Combination Criteria:** DECA has identified general criteria and guidelines for evaluating prospective target businesses, including being fundamentally sound but underperforming their potential, exhibiting unrecognized value, being at an inflection point, offering opportunities to enhance financial performance, and having an attractive potential return for shareholders. **Future Outlook:** - **Business Combination:** DECA has entered into a definitive merger agreement with Semnur Pharmaceuticals, Inc. (Semnur), a wholly-owned subsidiary of Scilex Holding Company (Scilex). The total consideration to be paid at closing by DECA to Semnur's equity holders will be an amount equal to the quotient of (a) $2,500,000,000 divided by (b) $10.00, and will be payable in shares of common stock of New Semnur (the "New Semnur Common Shares"). - **Risk Factors:** DECA faces several risk factors, including the uncertainty of completing a business combination within the prescribed time frame, the potential for redemptions of public shares, and the impact of global economic conditions and geopolitical events on its operations and financial performance. **Risk Factors:** - **Operational Risks:** DECA faces risks related to its ability to complete a business combination within the prescribed time frame, the potential for redemptions of public shares, and the impact of global economic conditions and geopolitical events on its operations and financial performance. - **Financial Risks:** DECA's financial condition is dependent on its ability to complete a business combination and generate revenue. The company has incurred significant expenses and may face challenges in raising additional capital if needed. **Financial Condition:** - **Cash and Investments Held in Trust Account:** As of December 31, 2024, DECA had $9,021,005 held in the Trust Account, which is invested in cash in an interest-bearing bank deposit account. The company intends to use substantially all of the funds held in the Trust Account to complete its business combination. - **Liquidity and Capital Resources:** DECA's liquidity needs prior to the consummation of the IPO were satisfied through a payment from the sponsor and a loan under an unsecured promissory note from the sponsor. The company has incurred significant expenses and may face challenges in raising additional capital if needed. **Market Position Changes:** - **Stock Performance:** DECA's units, Class A ordinary shares, and warrants are traded on The Nasdaq Stock Market LLC under the symbols "DECAU," "DECA," and "DECAW," respectively. The company's stock performance has been impacted by various factors, including market conditions and the progress of its business combination. **Note:** This summary is based on the information provided in the text and does not include all details from the original document. For a complete understanding, please refer to the full text.