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Denali Capital Acquisition Corp. (DECA) Shareholders Approve Longevity Deal

Denali Capital Acquisition Corp. (DECA) Shareholders Approve Longevity Deal

Denali Capital (NASDAQ:DECA) announced this morning that its shareholders approved its combination with biotech firm Longevity during a special meeting yesterday, January 9.

The deal was overwhelmingly approved as holders of 5,196,327 shares voted in favor of the proposal while holders of just 10,100 shares cast their votes against it.

In connection with the meeting, shareholders holding 4,440,202 public shares opted to redeem their shares. In total, Denali saw an aggregate of 98.82% of its trust removed from redemptions, including from previous extension votes, leaving it with around $1 million post-vote.

In August, Denali added $18 million in equity funding to its combination with Longevity through the sale of newly issued series A preferred shares to FutureTech Capital. But, the amount of shares purchased was later decreased in November from 1,800,000 to 1,300,000, reducing the funding to $13 million.

When announcing the business combination, Denali noted it aimed to raise a $30 million PIPE and that it must provide $30 million in cash in order for the deal to close. However, this closing cash condition was later waived.

The parties have not yet disclosed a timeline for the closing of the combination, but upon completion, the combined company is expected to trade on the Nasdaq under the symbol “LBIO”.

Denali Capital initially announced its $236.2 million combination with Longevity in January 2023. 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.