26 Capital Acquisition Moves to Liquidate Post Failed Casino Merger Completion

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26 Capital Acquisition has proclaimed its inability to finalize a business merger by the prescribed deadline, a predicament brought forth by a ruling from a Delaware Court. It was hoped that the SPAC would have mounted a compelling case for its merger associate, who happens to own a casino in the Philippines, and persuaded them to fruition. However, this was not the case.

Faced with this unforeseen circumstance, 26 Capital announced its intentions to formally go into liquidation, a process that would come into effect at the closing of business on September 21.

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Japanese industry behemoth, Universal Entertainment, had earlier in the month vocalized its prediction of a possible appeal by 26 Capital Acquisition. This appeal would challenge the court ruling on the merger agreement between 26 Capital and the managing entity of the Okada Manila casino resort in the Philippines. The reins of this casino remain firmly in the control of Universal Entertainment.

Unique on the world stage, Okada Manila takes pride in being the only Japanese owned and operated casino.

On the preceding day, it was held by the Delaware court that the Japanese collective need not proceed with the merger agreement with 26 Capital Acquisition, in a deal poised for listing the operator of Okada Manila resort in the U.S.

Vice Chancellor Travis Laster, officiating as judge, attributed his decision to a variety of factors, according to the court document as cited by GGRAsia report.

The ruling favoring a non-merger course was guided, in part, by the judge’s verdict that 26 Capital Acquisition had demonstrated behavior that should not be incentivized.

In response to this setback, Jason Ader, chairman and CEO of 26 Capital Acquisition, conveyed his disappointment over the outcome, emphasizing the beneficial prospects the merger had promised to all parties involved. However, he pledged their unwavering commitment to heightening shareholder value and affirmed continuous exploration of available strategic options.

Despite the ruling, the judge maintained that damages could still be sought by 26 Capital Acquisition, a SPAC listed on Nasdaq. He affirmed that these details would be attended to at a later date.

In the context of the ensuing liquidation, it was communicated by 26 Capital Acquisition that their commitment to vigorously pursue all available remedies, inclusive of damages, remains robust. They are planning subsequent releases, to update on the progress of their recovery undertakings.

It is expected that the per-share redemption price will sit at $10.95, prior to taxes and dissolution expenses. Shares are set to be terminated around the close of business on September 25.