Denali Capital Acquisition Corp. announced a private placement and issued convertible promissory note for gross proceeds of up to $825,000 to the Sponsor on April 11, 2023. The note was issued with an initial principal balance of $412,500, with the remaining $412,500 drawable at the company's request prior to the maturity of the note.

The note bears an interest equivalent to the lowest short-term Applicable Federal Rate, and matures upon the earlier of the closing of company's initial business combination and the date of the liquidation of company. At the option of the Sponsor, upon consummation of a business combination, the note may be converted in whole or in part into additional Class A ordinary shares, at a conversion price of $10 per ordinary share.