Okada’s universal fires back at 26 Capital allegations
In the latest development of the fallout between US-based SPAC 26 Capital and Okada Manila parent operator Universal Entertainment, the latter accuses the SPAC of ‘desperation;’ Universal accuses 26 Capital head of ‘recklessness’ and harassment.
Original story by Asia Gaming Brief with insights from the ACN Newsdesk
Universal Entertainment, the parent company of Okada Manila casino resort, has denied the allegation hurled against them by 26 Capital, the special purpose acquisition company (SPAC), accusing the SPAC was attempting to ‘execute a reverse merger with them’.
In a response to AGB, Universal denied any instance of wrongdoing, and claimed that these accusations were a sign of desperation on the part of Ader SPAC.
“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,’ the company noted.
‘Ader has tried everything to force a deal that was terminated by their own illegal and unethical actions, and have now resorted to inventing absurd stories. Fabrications and allegations are not facts.’
These unethical actions include reports of Ader SPAC CEO Jason Ader attempting to bribe Universal officials to ignore or withdraw red-flag findings about the merger, using private investigators to harass and intimidate senior executives who had reservations about the deal, leaking privileged information, and most egregiously, failing to stop insider trading activity in the SPAC shares by his business partner.
However, according to Universal, the main motivation behind Ader’s ‘frantic need’ for the merger to push through is due to his own reckless decision’. ‘
Even before the merger was completed, Ader sold approximately $25 million worth of ‘Class B’ shares to an investor, then immediately wired those proceeds to Ader’s personal bank account. When the deal did not close, Ader apparently did not return the tens of millions of ill-gotten gains.
Okada’s Universal recently terminated a planned merger with US-based 26 Capital. Universal alleges breaches and fraudulent acts by the other party and seeks damages and fees from the fallout of the agreement.
Also earlier this year, the Paranaque Regional Trial Court in Metro Manila had ordered the arrest of Kazuo Okada and his associates for siphoning money from Okada Manila during their forceful takeover of the integrated casino resort last year
To learn more about the fallout between the two corporations, read the original story by Asia Gaming Brief at https://agbrief.com/news/philippines/03/08/2023/universal-points-an-accusing-finger-at-spac-in-okada-manila-dispute/
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