05:58 PM EDT, 07/02/2024 (MT Newswires) -- Scilex Holding ( SCLX ) unit Semnur Pharmaceuticals and Denali Capital Acquisition ( DECA ) , a blank-check company, said they signed a letter of intent for a proposed business combination.

The deal translates into an equity value of Semnur of up to $2 billion, subject to certain adjustments. The expected cash on hand at closing will be up to $40 million.

The proposed merger would provide investment to Semnur for the development of a non-opioid product (10 milligrams injectable dexamethasone sodium phosphate viscous gel), or Semdexa, a phase 3 non-opioid, viscous gel formulation for epidural injections to treat lumbosacral radicular pain with fast-track status from the US Food and Drug Administration.

Scilex ( SCLX ) will likely be the majority holder of the combined company following completion.

Shares of Scilex ( SCLX ) jumped 17% in recent after-hours trading.

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