DALLAS, Sept. 26,
2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) ("Ashford Trust" or the "Company") today announced that
it was notified by the New York Stock Exchange (the "NYSE") on
September 23, 2024, that it is not in
compliance with Section 802.01C of the NYSE's Listed Company
Manual, which requires listed companies to maintain an average
closing share price of at least $1.00
over a consecutive 30 trading day period.
The Company plans to notify the NYSE within 10 business days of
receipt of the notice that it intends to execute a 1-for-10 reverse
stock split in order to regain compliance. The Company can regain
compliance at any time within a six-month cure period following its
receipt of the notice if, on the last trading day of any calendar
month during such cure period, the Company has both: (i) a closing
share price of at least $1.00 and
(ii) an average closing share price of at least $1.00 over the 30 trading-day period ending on
the last trading day of the applicable calendar month.
The Company believes the reverse stock split will benefit all
shareholders by addressing several items impacting its common
stock:
- It will allow the Company's common stock to continue trading on
the NYSE.
- The Company anticipates that the reverse stock split will
meaningfully increase the Company's market price per share above
the $5 per share threshold required
by many institutions to hold shares.
- Some brokers limit the ability or increase the cost to margin a
stock under $5 per share.
By implementing a reverse stock split, the Company and its Board
of Directors believes it can realize increased incremental demand
for its common stock while also making the Company's shares more
attractive to a broader range of potential long-term institutional
investors, individual investors, and buy-side analysts.
The Company's common stock will continue to be listed and traded
on the NYSE during this period, subject to the Company's compliance
with other NYSE continued listing standards. The Company's common
stock will continue to trade under the symbol "AHT," but will have
an added designation of ".BC" to indicate that the Company is not
currently in compliance with NYSE continued listing standards.
The notice does not affect the Company's ongoing business
operations or its Securities and Exchange Commission reporting
requirements, nor does it trigger a breach of the Company's
material debt obligations. The Company can provide no assurances
that it will be able to satisfy any of the steps outlined above and
maintain the listing of its shares on the NYSE.
* * * * *
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
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. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "potential," "intend," "expect," "anticipate,"
"estimate," "approximately," "believe," "could," "project,"
"predict," or other similar words or expressions. Additionally,
statements regarding the following subjects are forward-looking by
their nature: our business and investment strategy; anticipated or
expected purchases, sales or dispositions of assets; our projected
operating results; completion of any pending transactions; our plan
to pay off strategic financing; our ability to restructure existing
property-level indebtedness; our ability to secure additional
financing to enable us to operate our business; our understanding
of our competition; projected capital expenditures; the impact of
technology on our operations and business; the risk that the notice
and noncompliance with NYSE continued listing standards may impact
the Company's results of operations, business operations and
reputation and the trading prices and volatility of the Company's
common stock; and the Company's ability to regain compliance with
the NYSE continued listing standards. 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 the
Company's filings with the SEC.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We will not publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or circumstances, changes in expectations or
otherwise except to the extent required by law.
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SOURCE Ashford Hospitality Trust, Inc.