London: drug developer Semnoor Pharmaceuticals said Tuesday that it had signed a letter of intent for a public announcement. Fusion With a special purpose acquisition company Denali Capital Participated in a pre-transaction equity deal with Acquisition Corp. valued at up to $2 billion.

California-based Semnur, a unit of Silex HoldingDevelops non-opioid pain therapy.

If the deal goes through, the combined company will operate under the name Semnoor Pharmaceuticals and Cylex will be the majority holder, Semnoor said. It plans to seek approval from SPAC shareholders in the second half of 2024.

The company intends to use the money received from this deal for the development of its lead drug. SP-102which is being tested in late-stage trials for patients with moderate to severe chronic disease Radicular Pain Or sciatica, Semanur said.

Sciatica refers to irritation, swelling, pinching, or pressure in one or more nerves that run from the lower back to the legs.

SPACs are shell companies that raise money in an initial public offering and hold it in a trust for the purpose of merging with a private company and taking it public. SPACs typically have up to two years from the time they list their shares to complete the merger.

(Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)