LuxUrban Hotels (LUXH) has shared an update.
LuxUrban Hotels Inc. has launched a debt offering, aiming to raise up to $10 million through senior secured convertible promissory notes with attached common stock purchase warrants. The proceeds are earmarked for working capital and other corporate initiatives, particularly the Lux 2.0 program designed to solve financial and operational challenges and boost long-term shareholder value. The first tranche has already brought in $2.1 million, and certain equity investors can convert their holdings into this offering. The notes, bearing 18% interest, are tied to the company’s assets and will be repaid over two years starting from August 2025. This private offering is aimed at accredited investors, offering additional rights and potential conversion into common or preferred stock, subject to specific terms and future corporate actions like a reverse stock split and compliance with Nasdaq regulations.
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