Semnur Pharmaceuticals to go public in SPAC deal of up to $2 billion with Denali Capital (updated)

Semnur Pharmaceuticals

02/07/2024 23:19

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       July 2 (Reuters) - Drug developer Semnur Pharmaceuticals
said on Tuesday it has signed a letter of intent to go public
through a merger with special purpose acquisition company Denali
Capital Acquisition Corp  DECA.O  in a pre-transaction equity
deal valued at up to $2 billion.
    California-based Semnur, a unit of Scilex Holding  SCLX.O ,
develops non-opioid pain therapies.
    Semnur said the combined company, if the deal goes through,
will operate as Semnur Pharmaceuticals with Scilex as the
majority holder. It plans to seek approval from the SPAC's
shareholders in the second half of 2024.
    The company intends to use proceeds from the deal to fund
development of its lead drug candidate, SP-102, which is being
tested in late-stage trials for patients with moderate-to-severe
chronic radicular pain or sciatica, Semnur said.
    Sciatica refers to irritation, inflammation, pinching or
compression in one or more nerves that run down the lower back
and into the legs.
    SPACs are shell companies that raise money in an initial
public offering and put it in a trust for the purpose of merging
with a private company and taking it public. SPACs typically
have up to two years from the time they list their shares to
close a merger.
          

 (Reporting by Mariam Sunny in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Mariam.ESunny@thomsonreuters.com;))