LuxUrban Hotels Issues Common Stock Payment to August Investors

LuxUrban Hotels Inc. (NASDAQ: LUXH) recently disclosed in an 8-K filing with the Securities and Exchange Commission that it issued 335,579 shares of common stock to certain investors referred to as the “August Investors.” This issuance, known as the “Payment Shares,” was made on January 7, 2025. These shares were provided as payment in kind at a rate of $0.542 per share, covering the monthly interest payment due on January 5, 2025.

The company executed this issuance as part of a debt placement agreement with the August Investors under a securities purchase agreement dated August 13, 2024. The value of these Payment Shares has been determined to be $0.01 above the lower of either the closing market price on December 16, 2024, or the closing market price on the trading day just before the Payment Date.

This debt settlement agreement was established in a debt modification agreement dated December 16, 2024, a copy of which has been provided as Exhibit 99.1 in the Current Report on Form 8-K filed by LuxUrban Hotels. In light of this recent development, the company fulfilled its obligations to the August Investors, demonstrating its commitment to managing its financial obligations efficiently.

LuxUrban Hotels Inc., an emerging growth company listed on the Nasdaq Stock Market LLC under the ticker symbols LUXH for Common Stock and LUXHP for the 13.00% Series A Cumulative Redeemable Preferred Stock, is taking strategic steps to navigate its financial commitments in a manner conducive to both parties’ interests.

For further details, interested parties can refer to the SEC filing made by LuxUrban Hotels Inc., including the specifics detailed in the attached debt modification agreement.

The information presented in this news article is based on the official filing made to the Securities and Exchange Commission by LuxUrban Hotels Inc. on January 13, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read LuxUrban Hotels’s 8K filing here.

LuxUrban Hotels Company Profile

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. It manages a portfolio of hotel rooms in New York, Washington DC, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc and changed its name to LuxUrban Hotels Inc in November 2022.