26 Capital Acquisition Corp. announced a private placement of secured convertible promissory note for the gross proceeds of $2,000,000 on June 29, 2023. The transaction included participation from returning investor 26 Capital Holdings LLC.

The note matures upon the earlier of the satisfaction of all conditions set forth in Article 7 of merger agreement, the date that the winding up of the company is effective and the one year anniversary of the issuance of the convertible note. The convertible note does not bear interest. The convertible note will convert into a number of shares of Class A common stock of the company, par value $0.0001 per share, at a conversion price per share equal to the average closing price of the Class A common stock for the 30 consecutive trading days immediately preceding the pre-closing satisfaction date.

The company borrowed $500,000 available to it under the convertible note.