Okada Manila's Parent Denounces 26 Capital Accusations as Ridiculous and Desperate
Universal Entertainment, the parent company of Okada Manila, has responded to claims made by 26 Capital (NASDAQ: ADER), labeling them as "absurd" and "desperate" attempts to divert attention from current legal proceedings.
26 Capital is a special purpose acquisition company (SPAC) under Jason Ader's control, which entered into an agreement in October 2021 to take Okada Manila public on a US exchange through a reverse merger, valuing the Philippine integrated resort operator at $2.6 billion.
Recently, it emerged that 26 Capital suspects Universal Engagement of suspicious activity that might constitute bribery with Philippine officials to undermine the merger agreement. In a pretrial brief, 26 Capital presented emails supposedly backing up these claims. However, Universal refuted the allegations.
The company accused 26 Capital of trying to obscure the truth and evade the reality that Ader SPAC engaged in a manipulative and deceitful series of actions, including self-dealing, which made any merger with them infeasible. Universal stated in a press release obtained by :
"This is an obvious and very clumsy attempt to muddle the truth, and to steer away from the fact that Ader SPAC engaged in a systematic course of fraudulent and deceptive conduct, including self-dealing, that made any merger with them impossible."
Universal even accused Ader of trying to bribe some employees at the Japanese company and hiring private investigators to harass and intimidate executives with doubts about the deal.
Universal Accuses Ader of Rushing to Complete Okada Manila Deal
Typically, transactions are finalized within a few months of their announcement unless shareholder votes are delayed. However, the 22-month interval between when 26 Capital and Okada Manila revealed their merger plans is unusual. Universal Entertainment asserted that Ader hurried to conclude the transaction so he could meet a deal with another investment firm.
The Japanese company stated that Ader sold $25 million in shares to Rimu Capital, causing him to rush the Okada Manila combination in an effort to access the funds, which ended up in Ader's own bank account.
"When the deal did not close, Ader apparently did not return the tens of millions of ill-gotten gains. That investor has now sued Ader for fraud in a US Court. Unfortunately, material and incurable breaches of the merger agreement on their side caused the deal to collapse," concluded Universal.
Pressing for a Terminated Merger Agreement
Universal Entertainment wants the merger agreement scrapped, while 26 Capital wishes to move forward with bringing Okada Manila public in the US.
Universal believes the agreement runs counter to the company's interests, senior executives, and legal frameworks.
"A merger was about to take place, but it did not happen because one party could not be trusted, and broke several stipulations of the deal," said Universal. "That is all there is to it, and to go as far as concocting wild political conspiracies reeks of desperation."
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Source: www.casino.org
