MIAMI, Oct. 3, 2023
/PRNewswire/ -- 26 Capital Acquisition Corp. ("26 Capital")
(NASDAQ: ADER) today announced that, on September 27, 2023, the Delaware Court of Chancery (the "Delaware Court") granted a motion for
temporary restraining order (the "Motion") filed by Schulte Roth & Zabel LLP ("Schulte")
enjoining 26 Capital from, among other things, effecting the
previously announced (i) liquidation of 26 Capital's trust account
(the "Trust Account" and the process, the "Liquidation") and (ii)
redemption of all of the public shares held by 26 Capital's public
stockholders (the "Redemption"), prior to paying or making
provisions for any outstanding obligations owed to its creditors,
including Schulte (the "TRO"). Concurrently with filing the
Motion, Schulte also filed a complaint against 26 Capital in the
Delaware Court related to disputed
legal fees.
"We are deeply troubled that Schulte has sought to interfere in
the timely and orderly liquidation and distribution of investor
capital back to its rightful parties," said Jason Ader, 26 Capital's Chief Executive Officer
and Chairman of its board of directors. "In light of the ongoing
legal matters, our commitment remains to our stockholders as we
strategically allocate our resources."
Unfortunately, as a result of the TRO, 26 Capital instructed
Continental Stock Transfer & Trust Company, the trustee of the
Trust Account, and Equiniti Trust Co., its transfer agent, to halt,
until further notice, the Liquidation and the Redemption. Prior to
the TRO, the Liquidation was to be effective as of September 21, 2023, and the Redemption was
expected to be completed within ten business days after
September 28, 2023.
The TRO expires on October 11,
2023, prior to which the Delaware Court will hold a hearing to
determine whether the TRO will be renewed. 26 Capital is evaluating
its legal options regarding these proceedings and intends to defend
itself vigorously against Schulte's allegations; 26 Capital remains
committed to returning the funds held in the Trust Account to its
public stockholders as soon as possible.
Additionally, 26 Capital announced today that, effective
September 21, 2023, J. Randall Waterfield resigned from the board of
directors of 26 Capital. Mr. Waterfield's resignation was not the
result of any dispute or disagreement with 26 Capital or 26
Capital's board of directors on any matter relating to 26 Capital's
operations, policies or practices.
About 26 Capital Acquisition Corp.
26 Capital Acquisition Corp. (NASDAQ: ADER) is a Nasdaq-listed
blank check company formed for the purpose of creating stockholder
value by identifying an acquisition target with significant growth
opportunities that the 26 Capital team can enhance by utilizing its
experience and track record of creating and unlocking value, with
particular focus in gaming, gaming technology, lodging, and
entertainment.
Forward-Looking Statements
This press release may include "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements that involve risks and uncertainties. If
any of these risks or uncertainties materialize, or if any of 26
Capital's assumptions prove incorrect, 26 Capital's actual results
could differ materially from the results expressed or implied by
these forward-looking statements. Additional risks and
uncertainties include those associated with: litigation relating to
the Liquidation and Redemption. All forward-looking statements in
this communication are based on information available to 26 Capital
as of the date of this communication, and 26 Capital does not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made, except as required by
law.
Media Contact: ltyther@5wpr.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/26-capital-acquisition-corp-announces-hold-to-liquidation-301946237.html
SOURCE 26 Capital