LuxUrban Hotels Announces Closing of Public Offering of Securities
Summary
MIAMI, July 16, 2024 (GLOBE NEWSWIRE) -- LuxUrban Hotels Inc. (LuxUrban or the Company) (Nasdaq: LUXH), which secures long-term operating rights for entire hotels through Master Lease Agreements (MLA) under which it manages the hotel and rents out, on a short-term basis, rooms to business and vacation travelers, today announced the closing of its underwritten public offering of 30,000,000 shares of common stock at a public offering price of $0.17 per share. In addition, the Company has granted the underwriters a 45-day option to purchase up to 4,500,000 additional shares of common stock at the public offering price, less the underwriting discounts.Alexander Capital, L.P. acted as sole book-running manager for the offering.The Company intends to use the proceeds from the offering for working capital and other general corporate purposes.All of the shares of common stock were offered by the Company pursuant to a shelf registration statement on Form S-3 (No. The Company is strategically building a portfolio of hotel properties in destination cities by capitalizing on the dislocation in commercial real estate markets and the large amount of debt maturity obligations on those assets coming due with a lack of available options for owners of those assets. Forward-looking statements in this release may include, for example, statements with respect to the Companys ability to successfully de-platform its properties from its former franchise partner and operate independently, its ability to improve its working capital and cash flow profiles, enhance its balance sheet and deliver organic revenue growth, scheduled property openings, expected closing of noted lease transactions, the Companys ability to continue closing on additional leases for properties in the Companys pipeline, as well the Companys anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. The forward-looking statements contained in this release are based on current expectations and belief concerning future developments and their potential effect on the Company.