LuxUrban Hotels Inc. to Implement 1:70 Reverse Stock Split to Enhance Position on Nasdaq

LuxUrban Hotels Inc., a company specializing in leasing entire hotels on a long-term basis, has announced its plans to effectuate a one-for-seventy reverse stock split of its common stock. The decision was reached during a special meeting held on November 12, 2024. This strategic move is aimed at fortifying the company’s standing within the Nasdaq Capital Markets, improving trading profiles, and preparing for future growth opportunities. Following the reverse split, the total number of outstanding common stock shares will decrease from around 151.85 million to approximately 2.17 million shares.

Additionally, LuxUrban Hotels received approval from its stockholders to waive the 19.99% share limitation under Nasdaq Rule 5635(d. This waiver allows the company to issue more common stock shares upon the conversion of certain convertible promissory notes and the exercise of existing warrants. This approval will ensure LuxUrban’s adherence to Nasdaq listing standards while maximizing flexibility in its financing strategies.

The reverse stock split will have the following key details:
– Ratio: 1-for-70, meaning for every 70 shares held, stockholders will receive one share.
– Effective Date: November 20, 2024, at the opening of the market.
– CUSIP: The new CUSIP number for the post-split common stock will be 21985R303.

The common stock trading symbol on the Nasdaq Capital Market will remain “LUXH.” Stockholders who would own fractional shares post-split will receive cash in lieu of such fractions.

Michael James, Chief Financial Officer of LuxUrban Hotels, expressed, “The approval of the reverse stock split and Nasdaq compliance proposal marks a significant step in our ongoing efforts to drive shareholder value. We appreciate the support of our stockholders and remain committed to our vision of becoming a leader in the urban lodging market.”

For further information on the reverse stock split, interested parties are encouraged to refer to the company’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on October 29, 2024, and the related 8-K filing dated November 15, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read LuxUrban Hotels’s 8K filing here.

About LuxUrban Hotels

LuxUrban Hotels Inc utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington DC, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc and changed its name to LuxUrban Hotels Inc in November 2022.