26 Capital Announces Liquidation After Courtroom Setback in Okada Manila Merger


In an unfortunate turn of events, 26 Capital, led by CEO Jason Ader, has announced its liquidation procedures subsequent to a major setback in court related to its potentially fruitful merger with Okada Manila. A disagreement between the two parties culminated in a courtroom battle that resulted in the special purpose acquisition company’s (SPAC) loss and subsequent decision to dissolve operations.

The merging process initiated through a reverse merger effort, valuing Okada Manila at $2.6 billion, began nine months following the commencement of an Initial Public Offering (IPO) by 26 Capital. Despite the diligent joint effort by both entities to reach the finish line in time, the merger’s final date had to be extended by a year. This extension was made possible due to good faith commitment demonstrated by both 26 Capital and Universal Entertainment, the parent company of Okada Manila.

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However, the unexpected collapse of good faith efforts in this year paved the way for litigation. As a result, multiple lawsuits were exchanged, and Delaware Court of Chancery Vice Chancellor, Travis Laster, ruled that Japan-based Universal Entertainment had every right to abandon the merger agreement, if so desired.

Despite this unanticipated turn of events, it’s not all doom-and-gloom for shareholders. In a silver lining of sorts, the liquidation means capital will be returned to the investors. There’s room for optimism as it’s quite plausible some shareholders of 26 Capital could yield something extra from the liquidation.

Even though the Vice Chancellor ruled Universal Entertainment isn’t obliged to proceed with the merger, Laster also ruled that 26 Capital can pursue financial damages against the Japanese gaming company — something Ader’s firm has publicly stated it intends to do.

The liquidation constitutes a redemption of all outstanding shares of common stock from public stockholders in its initial public offering, at a redemption price of nearly $10.95 per share. The SPAC said it planned to subtract a portion of the Trust Account’s accrued interest to handle taxes and dissolution expenses.

As for what will transpire regarding 26 Capital’s pursuit of punitive damages against Universal Entertainment, the future holds the answers. Relevant details will undoubtedly emerge as the process unfolds.

For those who took a hit from 26 Capital’s liquidation and are looking for other opportunities to invest, we at West Island Blog have resources that could help. The flexibility of the digital age has now extended to the realm of casinos, where virtual platforms are providing an exciting new playground for investments. In fact, we’ve compiled a list of the top online casinos from across Canada which have been making waves in the industry this month. Thus, opening a door for investors looking for their next rewarding venture.