26 Capital delists from NASDAQ after failed Okada merger
The delisting comes after a US judge ruled that Universal did not have to complete the merger.
The Philippines.- 26 Capital Acquisition Corp has concluded its NASDAQ listing and liquidated its trust account. This development follows the failed merger attempt with Universal Entertainment Corp, the operator of Okada Manila.
The liquidation process commenced on September 21, with the cancellation of public shares scheduled for today (September 25). Shareholders will receive a per-share redemption price of approximately $10.95, with a deduction to cover a portion of accrued interest. The deductions will be used to settle taxes and dissolution expenses related to the company’s closure.
This decision to liquidate and delist comes after a US judge’s ruling that Universal Entertainment Corp was not obligated to proceed with the merger with 26 Capital. The judge’s ruling indicated that 26 Capital engaged in behaviour that should not be rewarded and that a majority shareholder had conspired to mislead Universal Entertainment Corp.
The merger agreement announced in October 2021 was intended to allow Universal to combine with its Philippine subsidiary Tiger Resorts Asia and list Okada on the Nasdaq. However, Universal Entertainment called off the agreement, accusing 26 Capital of disregarding SEC laws and misleading investors.
26 Capital Acquisition Corp has said it remains committed to pursuing all available legal remedies. The company expects to complete the share redemption disbursement within ten business days after September 28, 2023.
