DALLAS, Aug. 27, 2020 /PRNewswire/ -- Ashford Inc.
(NYSE American: AINC) ("Ashford" or the "Company") today announced
that it received a letter from the NYSE American LLC (the "NYSE
American") dated August 26, 2020,
notifying that the Company is no longer in compliance with NYSE
American continued listing standards. Specifically, the letter
states that the Company is not in compliance with the continued
listing standards set forth in Sections 1003(a)(i) and (ii) of the
NYSE American Company Guide (the "Company Guide"). Section
1003(a)(i) requires a listed company to have stockholders' equity
of $2 million or more if the listed
company has reported losses from continuing operations and/or net
losses in two of its three most recent fiscal years. Section
1003(a)(ii) requires a listed company to have stockholders' equity
of $4 million or more if the listed
company has reported losses from continuing operations and/or net
losses in three of its four most recent fiscal years. The Company
reported a stockholders' deficit of $159.1
million as of June 30, 2020,
and has had losses from continuing operations and/or net losses in
each of its five most recent fiscal years, except for the fiscal
year ended December 31, 2018.
However, Section 1003(a) states that the NYSE American will not
normally consider suspending dealings in, or removing from the
list, the securities of a listed company which is below standards
(i) and (ii) of Section 1003(a) if the listed company is in
compliance with the following two standards: (1) total value of
market capitalization of at least $50
million; or total assets and revenue of $50 million each in its last fiscal year, or in
two of its last three fiscal years; and (2) the listed company has
at least 1.1 million shares publicly held, a market value of
publicly held shares of at least $15
million and 400 round lot shareholders. As of August 26, 2020, the Company was in compliance
with the first standard because it had total assets and total
revenue of at least $50 million in
its last fiscal year and was in compliance with the second
standard, except that the current market value of publicly held
shares was below $15 million.
The Company must submit a plan of compliance (the "Plan") by
September 25, 2020 addressing how it
intends to regain compliance with Sections 1003(a)(i) and (ii) of
the Company Guide by February 26,
2022, or sooner if the NYSE American determines that the
nature and circumstances of the Company's continued listing status
warrant a shorter period of time. The Company intends to fully
comply with the NYSE American's requests and will submit its Plan
accordingly.
The Company's stock will continue to be listed on the NYSE
American while the Company evaluates its various alternatives. The
Company's receipt of such notification from the NYSE American does
not affect the Company's business, operations or reporting
requirements with the U.S. Securities and Exchange Commission.
Ashford provides global asset management, investment management
and related services to the real estate and hospitality
sectors.
Follow Chairman and CEO Monty
Bennett on Twitter at www.twitter.com/MBennettAshford or
@MBennettAshford.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the federal
securities regulations. When we use the words "will likely result,"
"may," "anticipate," "estimate," "should," "expect," "believe,"
"intend," or similar expressions, we intend to identify
forward-looking statements. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside Ashford
Inc.'s control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: the impact of COVID-19 on our business and investment
strategy; the ability for each of Ashford Hospitality Trust, Inc.
and Braemar Hotels & Resorts Inc., two of the Company's key
clients, to continue as a going concern; the timing and outcome of
the Securities and Exchange Commission's investigation; anticipated
or expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our ability to
restructure our current or obtain future financing arrangements;
our understanding of our competition; market trends; projected
capital expenditures; and the impact of technology on our
operations and business. Such forward-looking statements are based
on our beliefs, assumptions, and expectations of our future
performance taking into account all information currently known to
us. These beliefs, assumptions, and expectations can change as a
result of many potential events or factors, not all of which are
known to us. If a change occurs, our business, financial condition,
liquidity, results of operations, plans, and other objectives may
vary materially from those expressed in our forward-looking
statements. You should carefully consider this risk when you make
an investment decision concerning our securities. These and other
risk factors are more fully discussed in Ashford Inc.'s filings
with the Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. The Company can
give no assurance that these forward-looking statements will be
attained or that any deviation will not occur. We are not obligated
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
circumstances, changes in expectations or otherwise.
View original
content:http://www.prnewswire.com/news-releases/ashford-receives-letter-of-non-compliance-from-nyse-american-301120018.html
SOURCE Ashford Inc.