Semnur Pharmaceuticals to go public via SPAC merger with Denali Capital in $2.5 billion deal

(Reuters) -Semnur Pharmaceuticals, a wholly owned subsidiary of Scilex Holding Company, will go public via a merger with special purpose acquisition company Denali Capital Acquisition Corp in a $2.5 billion deal, the companies said on Tuesday.

Semnur is a clinical late-stage specialty pharmaceutical company focused on the development and commercialization of novel non-opioid pain therapies.

SPACs, which offer an alternate route to companies to list their shares, gained popularity back in 2020, but have seen a decline in interest with several companies abandoning deals, strict regulatory oversight and challenging economic conditions.

Upon closing of the transaction, the combined company will be renamed Semnur Pharmaceuticals, Inc. Its common stock and warrants are expected to be listed on the Nasdaq exchange under the ticker symbols "SMNR" and "SMNRW", respectively, the statement said.

The boards of directors of each of the SPAC, Semnur and Scilex, have unanimously approved the proposed transaction. The transaction is expected to close by the first quarter of 2025.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Alan Barona)