LuxUrban Hotels Announces Closing of Series A Cumulative Redeemable Preferred Stock Offering
26 Oktober 2023 - 10:25PM
Business Wire
LuxUrban Hotels Inc. (or the “Company”) (Nasdaq: LUXH),
which utilizes an asset-light business model to lease entire hotels
on a long-term basis and rent out hotel rooms in these properties
in key major metropolitan cities, announced today the closing of an
underwritten public offering of its 13.00% Series A Cumulative
Redeemable Preferred Stock (the “Series A Preferred Stock”).
The Company sold an initial 280,000 shares of Series A Preferred
Stock with a liquidation preference of $25.00 per share for gross
proceeds of $7 million. The Company expects to use the net proceeds
of this offering for near-term acquisitions and general working
capital purposes. In connection with the offering, the Company
granted the underwriter a 45-day option to purchase up to an
additional 15% of Series A Preferred Stock to cover
over-allotments, if any.
The registration process for the offering provides the Company
with the right to re-open the Series A Preferred Stock at any time.
The Company expects to opportunistically utilize this right in the
future to execute on its opportunity pipeline.
The Series A Preferred Stock is expected to commence trading on
the Nasdaq Capital Market under the trading symbol "LUXHP" on
October 27, 2023.
Alexander Capital, L.P. acted as the sole underwriter of the
offering.
The securities were offered pursuant to a registration statement
on Form S-3 (No. 333-274308) filed by the Company with the
Securities and Exchange Commission (“SEC”) and declared effective
by the SEC on September 13, 2023, along with a supplement to the
prospectus. A final prospectus supplement and accompanying
prospectus relating to the offering have been filed with the SEC
and are available on the SEC’s website. A copy of the final
prospectus supplement and accompanying prospectus related to the
offering may be obtained from Alexander Capital L.P., 17 State
Street, New York, NY 10004, Attention: Equity Capital Markets, or
by calling (212) 687-5650 or emailing info@alexandercapitallp.com,
or by logging on to the SEC’s website at www.sec.gov.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
LuxUrban Hotels Inc.
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 to business and vacation travelers
through the company’s online portal and third-party sales and
distribution channels. The company currently manages a portfolio of
hotel rooms in New York, Washington D.C., Miami Beach, New Orleans
and Los Angeles. As of the date of this release, the company has
approximately 1,625 hotel rooms available for rent, and seeks to
rapidly build its portfolio on favorable economics through the
acquisition of additional accommodations that were dislocated or
are underutilized as a result of the pandemic and current economic
conditions. In late 2021, the company commenced the process of
winding down its legacy business of leasing and re-leasing
multifamily residential units, as it pivoted toward its new
strategy of leasing hotels. This transition has been substantially
completed.
Forward Looking
Statements
This press release contains certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 (set forth in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended). The statements contained in this release that are not
purely historical are forward-looking statements. Forward-looking
statements include, but are not limited to, the expected use of the
net proceeds of the offering, and the Company’s expectation
regarding the trading of the Series A Preferred Stock on the
Nasdaq. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20231026161017/en/
Shanoop Kothari President & Chief Financial Officer LuxUrban
Hotels Inc. shanoop@luxurbanhotels.com
Devin Sullivan Managing Director The Equity Group Inc.
dsullivan@equityny.com
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