LuxUrban Hotels Announces Pricing of Series A Cumulative Redeemable Preferred Stock Offering
October 24 2023 - 6:30PM
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 pricing of an
underwritten public offering of an initial 280,000 shares of its
13.00% Series A Cumulative Redeemable Preferred Stock (the “Series
A Preferred Stock”) with a liquidation preference of $25.00 per
share, resulting in gross proceeds of $7 million. In connection
with the offering, the Company has granted the underwriter a 45-day
option to purchase up to an additional 42,000 shares of Series A
Preferred Stock to cover over-allotments, if any. The Company
expects to use the net proceeds of this offering for near-term
acquisitions and general working capital purposes.
The Company reserves the right to re-open the Series A Preferred
Stock at any time, and expects to opportunistically utilize this
right in the future to execute on its opportunity pipeline.
Utilizing a shelf registration process described below, the
Company may, from time to time at prices and on terms to be
determined at or prior to the time of the offering, sell up to $50
million in aggregate principal amount of its preferred stock in one
or more offerings; approximately $42 million in aggregate principal
amount of preferred stock is potentially available to the Company
following the closing of this offering.
The offering is expected to close on or about October 26, 2023,
subject to the satisfaction of customary closing conditions.
The Series A Preferred Stock has been approved for listing on
the Nasdaq Capital Market subject to official notice of issuance
under the trading symbol "LUXHP." The Company expects the Series A
Preferred Stock to begin trading on the Nasdaq Capital Market or
about October 27, 2023.
Alexander Capital, L.P. is 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 will be filed with the SEC and
will be available on the SEC’s website. A copy of the final
prospectus supplement and accompanying prospectus related to the
offering, when available, 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 closing
date of the offering, the expected use of the net proceeds of the
offering, and the ability of the Company to list the securities 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/20231024167091/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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