LuxUrban Hotels And Company's Chairman And Co-CEO Mutually Agree To Cancel $10M Financing Arrangement In Light Of Ongoing Discussions To Enhance Access To Non-Dilutive Capital
Portfolio Pulse from Benzinga Newsdesk
LuxUrban Hotels Inc. (LUXH) and its Chairman and Co-CEO Brian Ferdinand mutually agreed to cancel a $10M financing arrangement due to ongoing discussions with Wyndham Hotels & Resorts, Inc. to enhance access to non-dilutive capital. The company is in late-stage talks with Wyndham about Development Incentive Advances, which could accelerate and increase funding for new property acquisitions. Ferdinand will stop selling LUXH common stock, and approximately $500,000 from recent sales will be gifted to the company. LUXH continues to expand, having onboarded or in the process of onboarding 27 hotels to the Wyndham brand, and maintains its financial and unit guidance. Additionally, the underwriter of LUXH's Series A Preferred Stock offering partially exercised an over-allotment option on December 1, with the possibility of further exercises through December 8, with net proceeds aimed at leasing more units and for corporate purposes.
December 04, 2023 | 1:07 pm
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POSITIVE IMPACT
LuxUrban Hotels Inc. cancels $10M financing arrangement and is in discussions with Wyndham for non-dilutive capital, which could positively impact its growth and financing of new leases. The company's financial and unit guidance remains unchanged, and recent stock sales by the Chairman will benefit the company's capital.
The cancellation of the financing arrangement and the shift towards non-dilutive capital with Wyndham's support is likely to be viewed positively by investors as it suggests confidence in the company's growth prospects and financial stability. The gifting of proceeds from the Chairman's stock sales adds to the company's capital without diluting existing shareholders. The unchanged financial and unit guidance provides stability and predictability for investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Wyndham Hotels & Resorts, Inc. is in advanced discussions with LuxUrban Hotels Inc. to potentially accelerate and increase Development Incentive Advances for new property acquisitions, which may strengthen the partnership and enhance Wyndham's brand presence.
Wyndham's involvement in the potential new Key Money model with LuxUrban suggests an expanding partnership that could lead to more properties being onboarded to the Wyndham brand. This could have a positive impact on Wyndham's market presence and revenue streams from the expanded partnership.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70