Fertitta Entertainment Incorporated tries to cancel SPAC merger

U.S. special-purpose asset acquisition company (SPAC) Fast Acquisition Corporation is reportedly refusing to cancel its merger with Fertitta Entertainment Incorporated and take the hotel, restaurant and entertainment conglomerate public.

According to a report published Thursday on casinoudendansklicens.org, Fertitta Entertainment Incorporated, based in Houston, is owned by billionaire businessman Tilman Fertitta (pictured) and is responsible for Landry's Incorporated land-based casinos as well as gaming operator Golden Nugget Online Gaming Incorporated. The Texas-based firm allegedly entered into a $6.6 billion agreement in February that calls for its integration with Blank Check before listing on the New York Stock Exchange.

Continued control:

Under the terms of the original agreement, Fertitta, 64, is to retain a controlling stake in the new Fertitta Entertainment Incorporated of about 60%, serving as chief executive officer, chairman and president of the revamped conglomerate. Nation's Restaurant News reported that both sides extolled the merits of the alliance earlier this year as a way for the expanded company to grow and gain faster access to global capital markets.

In a February statement, Fertitta reportedly said.

"In the end, the decision to enter into the deal with Fast Acquisition Corporation was not in doubt."

Immediate invalidation:

Fertitta, however, has now reportedly changed his mind, issuing a statement Wednesday declaring the previously agreed-upon deal null and void because it was not completed by Dec. 1. The Galveston-born entrepreneur, who also owns a Houston Rockets National Basketball Association (NBA) franchise, allegedly revised that original agreement in June to cover a number of his many restaurant holdings, such as luxury brands Mastro's and Vic and Anthony's Steakhouse, without additional debt.

Impending litigation:

Fast Acquisition Corporation was formed by several restaurant business veterans, including the man behind the Ruby Tuesday-branded restaurant chain, Sandy Bill, and has reportedly responded to Fertitta's decision, saying such a unilateral move is "invalid, void and of no legal effect and is hereby dismissed." In addition, the Connecticut-based company said the alliance is not yet closed because its partner failed to file required financial statements on time, and that it will now take "all necessary steps to protect itself and its investors," including possible lawsuits.

Fast Acquisition Corporation reportedly said in a statement the following.

"You are hereby notified of the breach of contract and that if the breach is not remedied immediately, we intend to commence legal proceedings."

Arrangement Guarantee:

Fertitta Entertainment Incorporated, which was public before its 2010 delisting, reportedly assured investors that a potential break with Fast Acquisition Corporation would not affect the $1.56 billion agreement it entered into in August to transfer its stake in Golden Nugget Online Gaming Incorporated to U.S. online betting giant DraftKings Incorporated.

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