Denali Capital (NASDAQ:DECA) announced in an 8-K that it has added $18 million in equity funding to its combination with biotech firm Longevity through the sale of newly issued series A preferred shares.
FutureTech Capital has agreed to purchase 1,800,000 such shares at $10 per share and Denali plans to issue at least 200,000 more preferred shares to investors not covered in this purchase. When announcing the business combination, Denali noted it aimed to raise a $30 million PIPE and it must provide $30 million in cash in order for the deal to close.
These preferred shares will be convertible into ordinary shares at the lower of $8 or the 20-day VWAP of the company stock multiplied by 80%. The parties have set a floor price for such conversion at $5 and all prices may be further adjusted for dividends, stock splits or other corporate actions. Otherwise, these preferred shares will have the same voting power and dividend rights as ordinary shares.
Denali Capital initially announced its $236.2 million combination with Longevity in January. Bothell, Washington-based Longevity is building a platform to consolidate a number of clinical-stage therapies, beginning with treatment candidates aiming to improve outcomes of certain vascular conditions as well as replace lost tissue.