26 Capital Acquisition in an 8-K said it borrowed $2.5 million from its sponsor for working capital. The note is convertible into up to 2 million shares at $2.50 each.
The SPAC for more than a year and a half has been trying to move forward on a merger with Phillipines casino operator Okada Manila, now known as UE Resorts International.
The deal values the casino operator at $2.6 billion.
The transaction has been hamstrung by namesake founder Kazuo Okada’s often forceful efforts to reclaim his spot at the company, including a brief physical takeover of the Phillipines hotel and casino last year.
The casino’s corporate parent tried to terminate the deal last month. That followed a lawsuit filed by 26 Capital against Okada in February “because they were not honoring their contractual obligations and refusing to do the work required to close,” according to the court filing.
UE Resorts International countersued last month. The counterclaims, filed with the Delaware Court of Chancery, accused 26 Capital and its founder, Jason Ader, of fraud, of breaching US securities laws and of breaching the terms of the merger.
A SPAC spokesperson called the counterclaims “a desperate litigation strategy.” Read more.
