26 Capital Acquisition Corp. announced a private placement of an unsecured convertible promissory note for proceeds of $2,500,000 on March 30, 2023. The transaction will include participation from returning investor 26 Capital Holdings LLC.

The note matures upon the earlier of (a) the satisfaction of all conditions set forth in Article 7 of merger agreement and (b) the date that the winding up of the company is effective. The convertible note does not bear interest. The note will convert into up to a maximum of 2,000,000 shares at a conversion price of $2.5 per share.

The company may from time to time request advances and borrow funds periodically under the Line of Credit from the investor.