LuxUrban Hotels Acquires Future Revenue Share Payment Obligations From Its Pre-IPO Investors That Will Eliminate An Estimated $87.5M In Revenue Share Payments In Exchange For A One-Time Issuance Of 6.74M Of Common Stock Subject To An Extended Lock Up
Portfolio Pulse from Benzinga Newsdesk
LuxUrban Hotels (NASDAQ:LUXH) has entered into an agreement with its pre-IPO investors to eliminate $87.5M in revenue share payments in exchange for a one-time issuance of 6.74M shares. The agreement is expected to improve the company's cash position, increase margins, and future cash flows. LuxUrban Hotels has also increased its 2023 EBITDA guidance and initiated 2024 net rental revenue and EBITDA guidance.
May 22, 2023 | 12:26 pm
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LuxUrban Hotels' agreement with pre-IPO investors to eliminate $87.5M in revenue share payments in exchange for 6.74M shares is expected to improve the company's financial position and increase its 2023 EBITDA guidance.
The elimination of $87.5M in revenue share payments will significantly improve LuxUrban Hotels' cash position, access to growth capital, and increase margins. This will likely have a positive impact on the company's stock price in the short term. Additionally, the increased 2023 EBITDA guidance and initiation of 2024 net rental revenue and EBITDA guidance signal a positive outlook for the company's future performance, which may further boost investor confidence and stock price.
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