InnSuites Hospitality Trust (NYSE
American: IHT)
received a letter from NYSE American on November 15, 2021,
informing the Trust that the staff of the NYSE American Corporate
Regulation Department had determined that the Trust was not in
compliance with Part 10 of Section 1003(a)(ii) and (iii) of the
NYSE American Company Guide due to the Trust having stockholders’
equity of less than $4.0 million, and $6.0 million, respectively,
and losses from continuing operations and/or net losses in its five
most recent fiscal years ended January 31, 2021. The Trust is also
not eligible for any exemption in Section 1003(a) of the Company
Guide from the stockholder’s equity requirements. The Trust
experienced losses related to the Covid-19 pandemic over eighteen
months as well as recognizing non-cash hotel depreciation expense.
The NYSE’s letter informed the Trust that, to
maintain its listing, it must submit a plan of compliance by
December 15, 2021, addressing how it intends to regain compliance
with the continued listing standards by June 15, 2023, within the
maximum potential 18-month plan period available. Elements of the
compliance plan may include the sale of one or more of its assets
(Management believes IHT hotels have a much lower book value than
market value), sale of additional Trust stock at market value, sale
of minority interest in specific hotel properties and/or
anticipated continuation of the current operational upward current
trends in hotel gross operating profits, and/or the UniGen
efficient clean energy diversified investment, gaining material
profitability.
Once the NYSE informs the Trust that the
Regulation staff has accepted the Trust’s Equity Enhancement Plan
and has granted a Plan period, the NYSE Regulation staff will
review the Trust periodically for compliance with the initiatives
outlined in the Plan. Failure to make progress consistent with the
Plan or to regain compliance with continued listing standards by
the end of the Plan period could result in the Trust being delisted
from the NYSE American.
The Trust intends to timely cure the
non-compliance, has contacted the Exchange, and is working
diligently to timely complete the Plan. The Trust fully expects and
is confident it will be able to once again regain compliance with
the continued listing standards prior to a June 15, 2023 deadline
imposed by the NYSE American.
IHT Hotel Operation revenues and earnings have
continued to experience a sharp increase for the first half of
Fiscal 2022 (February 1, 2021, to January 31, 2022). IHT reported
Fiscal 2022 Second Quarter (May 1, 2021-July 31, 2021), profit of
$401,564, for the three months, which is an increase of over $1.6
million from the same prior year period of ($1,267,385). Earnings
Per Share based on this Consolidated Net Income amount were $0.04,
up from prior year loss of ($0.14).
Revenues were approximately $1.7 million for the
2022 Fiscal Second Quarter Ended July 31, 2021, an increase of over
81% or greater than $750,000 from revenues of approximately
$925,000 for the same prior year period. The substantial increase
in revenue and earnings in Fiscal Q2 was largely attributable to
the continuation of the solid start the Trust’s operations have
been off to in the current Fiscal Year 2022 (February 1,
2021-January 31, 2022), along with the decreased impact of
Covid-19, and decreased travel restrictions.
These extremely solid results of the first six
months of the current Fiscal Year have continued in Fiscal Q3 of
the current year as well. Consolidated Net Income of approximately
$560,000, was reported for the first half of Fiscal Year 2022,
which is an increase in excess of $2.1 million compared to the
first half of Fiscal Year 2021. Earnings Per Share based on this
Consolidated Net Income amount were $0.06, up from prior year loss
of ($0.18). Additionally, The First Half of Fiscal 2022 (February
1, 2021-July 31, 2021), profits far exceed their pre-Covid
counterparts of Fiscal Year 2020 and Fiscal Year 2019 by over $1.2
million each year.
These are all positive signs, and indicative
that things continue to progress positively and remain heading in
the right direction as the Travel Industry, the Economy as a whole,
and InnSuites Hospitality Trust (IHT) specifically, continue to
rebound and recover. Economic conditions continued to improve for
the Trust for the third consecutive Quarter, and are continuing to
show improvement in Q3 of the current Fiscal Year as well, based
upon preliminary results. Q3, Q2, and Q1 of Fiscal Year 2022, as
well as Q4 of Fiscal Year 2021 have all shown increased elevated
signs of strength, growth, and continued positive profit
improvement. Our hotel operations continue to perform substantially
better Year to Date for the first three quarters of Fiscal Year
2022.
InnSuites Hospitality Trust (IHT) has made a
substantial diversification investment in privately held UniGen
Power, Inc. (UniGen), a company developing a patented, high profit
potential, efficient clean energy generation innovation. IHT holds
convertible bonds and warrants that, if fully exercised, could
potentially result in IHT holding up to an approximate 25%
ownership stake in UniGen. IHT is informed that the UniGen
efficient clean energy innovation targets its first prototype,
under development since January 2020, to be in operation within the
next five months.
IHT has taken this diversification step into the
High Tech, potential high profit, direction of efficient, clean
energy with an investment in UniGen Power’s 1,000,000-watt “Next
Generation Power Plant™”. IHT’s investment and those of other
accredited investors totaling $3.65 million prior to and during
Covid 19 have enabled UniGen’s initial prototype to be in projected
operation during Q1 of calendar 2022, just a few months away.
Recent events have brought attention more than ever to the urgent
need for distributed primary power and for backup emergency power
from efficient, lower cost, clean, fuels like natural gas rather
than from diesel or coal. And UniGen’s 1,000,000 watts generated
is, for example, enough power for 350 homes.
Taking advantage of the delays created by
international Covid 19 travel restrictions and logistical logjams,
UniGen has developed additional new technological innovations
making its generator more efficient and robust. It expects these to
lead to three new patents. And, to protect its supply chain, UniGen
is in the process of transferring selected international parts
manufacturing to U.S. sources. While this move may add cost to some
parts, it promises to increase the deliverability of UniGen’s
production. Once the initial prototype is in operation and EPA
testing begins in Detroit, UniGen expects to receive significant
interest and cash flow including that from the $12 million purchase
order it currently has from an industry leader.
Said James Wirth President, CEO, and IHT Board
Chairman:
“IHT Management is confident that IHT will
timely present a plan to the NYSE American, and timely execute that
plan to regain full NYSE American compliance. IHT hotel profits
continue their strong recovery and rebound to levels higher than
previous pre-Covid comparable periods, as IHT continues to execute
our strategic plan of maximizing current hotel operating profits
while redeploying hotel real estate profits; and moving toward
IHT’s high potential diversification investment in the efficient,
clean-energy power generation UniGen innovation, a positive move
that is increasingly recognized by investors.”
“IHT Management has long believed, as indicated
in past IHT SEC Filings, that the investor community continues to
value IHT well below its full potential true underlying value (both
real estate equity/hotel operations, and clean energy opportunity
potential).”
Fiscal Year 2022 extended IHT’s uninterrupted,
continuous annual dividends to over 50 years, with semi-annual
dividends paid in July 2021, and scheduled for January 2022,
continuing this impressive uninterrupted annual dividend
record.
For more information, visit
www.innsuitestrust.com and www.innsuites.com.
Forward-Looking Statements
With the exception of historical information,
matters discussed in this news release may include “forward-looking
statements” within the meaning of the federal securities laws. All
statements regarding IHT’s review and exploration of potential
strategic, operational and structural alternatives and expected
associated costs and benefits are forward-looking. Actual
developments and business decisions may differ materially from
those expressed or implied by such forward-looking statements.
Important factors, among others, that could cause IHT’s actual
results and future actions to differ materially from those
described in forward-looking statements include the uncertain
outcome, impact, effects and results of IHT’s review of strategic,
operational and structural alternatives, IHT’s success in finding
potential qualified purchasers for its hospitality real estate, or
a reverse merger partner, the success of and timing of the UniGen
clean energy innovation, the continuation of semi-annual dividends
in the year(s) ahead, and other risks discussed in IHT’s SEC
filings. IHT expressly disclaims any obligation to update any
forward-looking statement contained in this news release to reflect
events or circumstances that may arise after the date hereof, all
of which are expressly qualified by the foregoing, other than as
required by applicable law.
FOR FURTHER INFORMATION:
Marc Berg, Executive Vice President 602-944-1500
email: mberg@innsuites.com
INNSUITES HOTEL CENTRE1730 E. NORTHERN AVENUE,
#122Phoenix, Arizona 85020Phone: 602-944-1500
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