26 Capital Acquisition in a regulatory filing today said it issued an unsecured convertible promissory note to its sponsor for $4 million and drew down the full amount last week.
The funds will be used for working capital.
This comes on the heels of a $2.5 million loan the sponsor extended to the SPAC in April.
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 insider opposition at the casino, mainly from 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 in March. 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. Read more.
